A partnership may be defined as a type of business organization in which two or more individuals or persons agree legally to own and manage a business firm. The individuals who have contributed their resources and skills or both to establish the organization are referred to as PARTNERS
As a result of partnership, they have a joint responsibility for profit, losses and risk of the enterprise. Partnership is formed by two or more persons but does not exceed 20 people, however, in banking enterprise, the required number of partners vary between two and ten persons
Features of Partnership
- Liability: Partners have unlimited liability
- Capital: The capital for establishment of partnership is raised by the partners by pooling their resources together
- Objective of Formation: The Objective of its formation is for profit maximization
- Legal Entity: A Partnership Business has no legal entity
- Ownership: Partnership is owned by two to twenty persons as in the case of banking enterprise, it varies between two and ten partners.
- Life Span: It is based on the discretion of the partners.
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