A
The one whose identity is not known to the general public is called _____________ partner
Secret
Business which have single owner is called _____________
sole proprietorship
Sole proprietor will have _______ liability
unlimited
Partnership is formed under Indian Partnership act _______
1932
The agreements between the partners is called ____________
Partnership deeds
There are two types of Partnership ___ and ________
Partnership on the basis of duration and on the basis of liability
Give any two things from partnership agreement
int on capital, drawings, name of partners
Give two reasons why registration of partnership is required
to sue to the third party , to file case on partners
Two merits of sole proprietorship business
ease of formation and closure, enjoyer of all profits, quick decision making
two Demerits of partnership buisness
Unlimited liability, lack of continuity
Explain mutual Agency
one act for all and all act for one
Steps to register partnership firm
1. filling of an application form 2. signature of all partners 3. submitted to registrar
give three difference between sole proprietorship and Partnership
no. of members, resources, sharing of risk
Below are given the merits and limitations of sole proprietorship form of business organisation. Write ‘M’ against Merits and ‘L’ against Limitations in the space provided against each.
(a) A sole proprietorship business is easy to form. (b) A sole proprietor is personally liable for all the liabilities of the business.
(c) A sole proprietor has a limited capacity to raise funds for his business.
(d) A sole proprietor can maintain secrecy about the affairs of his business.
(e) A sole proprietor maintains good personal contact with the customers.
M,L,L,M,M
One of Gopal’s friends Rahul comes to his shop and sits there for hours together. In Gopal’s absence, he attends to the customers and deals with his suppliers. Under the impression that Rahul is a partner (although he is not), a supplier finalised a deal which Gopal does not accept. In the process, the supplier suffers some loss. Can he claim the compensation from Rahul? What type of partner Rahul is?
Partner by estoppel, yes