What is partnership? Explain its advantages and disadvantages?
PARTNERSHIP The partnership is the relationship between two to fifty persons who agree to run a common business with the view to earn the profit. The partnership act 1932 of Pakistan clearly mentions that in banking business the partner must be between 2 to 10 & in limited partnership the no of member are 2 to 50 are required. All partner share profit & loss according to the partnership agreement. For forming the partnership requires the partnership deed on which all partner must signature agree upon it. ADVANTAGE OF PARTNERSHIP The partnership is easily to format and organized. The partner enters into a partnership agreement and start business. The partnership enjoys a better credit rating in the eyes of creditors. As the liability of each partner in the organization is unlimited, the financial institution can safely advance loan to the firms. Partnership can bring more capital o the business by the joint efforts of the partners. The partnership is normally in strong position to raise
