The Path to a Greener Future: Understanding Sustainable Development In an era where environmental challenges and resource depletion are becoming increasingly evident, the concept of sustainable development has gained significant importance. Sustainable development aims to meet the needs of the present without compromising the ability of future generations to meet their own needs. This blog post will explore the principles, goals, and strategies of sustainable development, highlighting its critical role in ensuring a balanced and healthy future for our planet. "Transforming our world: The path to sustainable development." What is Sustainable Development? Sustainable development is a holistic approach that integrates economic growth, environmental protection, and social equity. It seeks to create a harmonious relationship between human activities and the natural world, ensuring that resources are used efficiently and responsibly. Definition: The most widely recognized de...
A partnership
is defined as an association of individuals competent to enter into contracts,
who agree to carry on a lawful business in common to earn and share profits. The persons who are the owners of a partnership are
individually called ‘Partners’ and collectively called a ‘Firm’. The name under
which the partnership is formed is called a ‘Firm name’.
“Partnership is the relationship between the persons, who have agreed to share profits of a business, carried on by all or any of them, acting for all.” --Section 4 of the Indian Partnership Act, 1932
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CHARACTERISTICS OF PARTNERSHIP FIRM
The
following are the features of a partnership firm:
1. Agreement
or contractual relationship: A
partnership is always a result of a written contract between the partners. It
is also advisable to get the partnership registered with the Registrar of Firm
of the concerned state.
2. Agreement
to carry on business: A
partnership is formed to carry out a particular business. The term ‘business’
includes every lawful trade, occupation or profession which, if successful,
will result in profit or gain. Thus, a partnership firm cannot carry a business
that has been forbidden by the law.
3. Profit-sharing:
The agreement to form a
partnership business includes the condition that profits of the business will
be shared among the partners.
4. No
legal status: A partnership firm
has no separate legal status of its own apart from its partners. It is purely a
personal organization. Although a firm can be registered, the law does not give
it a separate legal status.
5. Unlimited
liability: All the partners
of a partnership firm must have unlimited liability. In case of insolvency
or bankruptcy of a firm, if the business assets are not sufficient to pay off
the business liabilities and the creditors, even the partners’ personal
property can be utilized to pay off such debts.
6. Mutual
trust and confidence: The
liability of partners in a partnership firm is unlimited. Hence, maintenance of
utmost food faith by every partner is the most important requirement for a
partnership firm to last long. The partners must disclose all the information
and render true accounts to each other in the course of the business of the
firm.
7. Non-transferability
of interest: The interest of the partner, whether monetary or otherwise in a partnership firm cannot be
transferred to some other person without the consent of the other partners.
8. Existence
of Business: An association can
become a partnership firm only when it is meant to do some kind of business for
profit. The business must also be legal, i.e., it must be within the limits of
the law.
9. Principal-agent
relationship: Every partner is
a principal to and an agent of every other partner. This principle of mutual
agency is fundamental in a partnership. In the absence of such a mutual
agency, mere sharing of profits will not make them partners.
10. Dissolution: A partnership firm can be dissolved at any time if all the partners of the firm agree to do so. Unforeseen events such as death, insolvency or insanity of one of the partners and even the court order can also lead to the dissolution of the firm.
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