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Presented By:M.Nauman Sher

To:Mr.Junaid

Forms of Partnership & Difference b/w Sole Proprietorship and Partnership

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Forms of Partnership

Partnership

General Partnership Limited Partnership

Particular Partnership Partnership at will

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The relationship which subsists between two or more persons carrying on a business in

common with a view to private gain.

What is Partnership?

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General Partnership

Partners liability is Unlimited.

Each partner involved in day-to-day operations.

Equal rights to take part in management of the business.

Example of dental office.

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General Partnership

General Partnership is further divided into two parts:

Partnership at will:Neither for fixed period nor for a fixed purpose.Under Section 7 of Partnership Act, known as

Partnership at will.Based on trust and faith.Partnership is dissolved by giving notice.

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General Partnership

Particular Partnership:

Partnership formed in particular adventures or certain undertakings or for specific time.

When work is completed partnership ends.

Example of Telenor and Ufone adds.

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Limited Partnership

Only invest in business.

Not concerned with management.

Concerned with dividend.

Liability is Limited.

Example of opening of a Hotel.

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Difference b/w Sole Proprietorship and

PartnershipSole Proprietorship Partnership

OwnerOne person ownership. Minimum two persons

Maximum twenty.

FormationIt can be established easily. Comparatively difficult

to establish.

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Difference b/w Sole Proprietorship and

Partnership

Division of profit &lossGets all profit and bears loss. Profit and losses are

shared as per agreement

Regulation of BusinessNo special act or ordinance Governed by Partnership

to govern the working. Act of 1932.

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Difference b/w Sole Proprietorship and

Partnership

Raising of CapitalResources and raising loan Amount of owner and rai-

is very limited. sing loan is easy.

ScaleOn small scale due to limited On large scale due to

resources. more resources & ability.

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Difference b/w Sole Proprietorship and

Partnership

ManagementBusiness is run and manag- Managed and run by all

ed by one person. or anyone acting for all.

RegistrationNo benefits. Not compulsory but

many

benefits.

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Difference b/w Sole Proprietorship and

Partnership

Question of successionOwnership passes on throu- Ownership is implemen-

gh succession. ted as per agreement.

Business SecretsBusiness secrets are closely Business secrets are kn-

guarded. own to all partners.

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Difference b/w Sole Proprietorship and

Partnership

Incentive to workDevotes entire energies to Incentive to work is not

successfully operate and found so much as in Sole

maximize profit. proprietorship.

DissolutionDissolution is as easy as it’s Dissolution takes place

formation. by an agreement or by

the order of court.

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Sole Proprietorship or Partnership both have it’s importance on

different levels. For instance, Sole Proprietorship is suitable for small scale

businesses and Partnership is suitable for medium or large size business.

Conclusion

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Question & Answers