Partnership business ppt

partnership form of business ppt and partnership formation ppt
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Published Date:25-07-2017
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General Nature of a Partnership Unit 1 CPT Mercantile Law Chapter -3 The Indian Partnership Act ,1932 CA. Dipti Lunawat Learning Objectives INTRODUCTION TO INDIAN PARTNERSHIP ACT,1932 WHAT IS PARTNERSHIP? ESSENTIAL ELEMENTS OF PARTNERSHIP TRUE TEST OF PARTNERSHIP PARTNERSHIP DISTINGUISHED FROM OTHER FORMS OF ORGANISATION TYPES OF PARTNERSHIP TYPES OF PARTNERS MINOR’S POSITION IN PARTNERSHIP Introduction It extends to whole of India except the state of Jammu & Kashmir st It came in force on 1 October,1932 except Section st 69, which came in force on 1 October , 1933 Partnership Act is not exhaustive If partnership Act,1932 is silent, Indian Contract Act,1872 is applicable What Is Partnership ACCORDING TO SEC 4 OF PARTNERSHIP ACT, 1932 Partnership is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all Essential Elements of Partnership Agreement Sharing profits of business. Business carried on by all or any of them acting for all. Agreement AGREEMENT MAY BE EXPRESS BETWEEN TWO OR OR IMPLIED MORE MEMBERS IT ARISES FROM CONTRACT AND FROM STATUS Sharing Profits of Business Business includes every trade , occupation & profession. Intention to share profits thereof Agreement to share loss in not an essential element. Business Carried on by all or Any of Them Acting for all MUTUAL CARDINAL AGENCY - EXTENSION OF PRINCIPLE OF PARTNER IS LAW OF PARTNERSHIP BOTH AGENT & AGENCY LAW PRINICPAL True Test of Partnership As per Section 6 IN DETERMINING WHETHER A GROUP OF PERSONS IS PARTNER OR NOT REAL RELATION BETWEEN THE PARTIES SHOWN BY ALL THE RELEVANT FACTS TAKEN TOGETHER • Sharing of profit is prima facia evidence Case Law Cox vs. Hickman • but not a conclusive test • True test is mutual agency. Non Partnership Interest Persons who receives profit but are not partners are regarded as non partnership interest Examples: Lender of Money to persons engaged or about to the engaged in any business A Servant or agent as his remuneration Widow or child of deceased partner A previous owner of part of business as the consideration for the sale of goodwill or share thereof. Distinction Between Partnership and Firms • Persons who have entered into partnership with PARTNERS one another are called individually “partners” • A Concrete thing signifying the collective entity FIRM for all the partners • The name under which the business is carried Firm name on • An abstract legal relation between the partners Partnership Questions Questions on partnership & True test of partnership Question No.1 The most important element in partnership is: a Business b Sharing of Profits c Agreement d Business to be carried on by all or any of them acting for all. Ans D Question No.2 A firm is the name of: a The Partners b The minors in the firm. c The business under which the firm carries on business d The collective name under which it carries on business Ans: D Question No.3 The true test of partnership is laid in following case law? a Cox Vs. Hickman b Garner Vs. Murray c Mohiribibi Vs. Dharmodas Ghosh d None of these Ans: A Question No.4 The Indian partnership Act came in force on? a 1.9.1872 b 1.7.1930 c 1.10.1930 d 1.10.1932 Ans D Question No.5 A partnership firm comes into existence by - and it can be- ? a Agreement and expressed b Agreement both implied and expressed c Status and by birth d Agreement and implied Ans: B Question No.6 Sharing of profits also includes sharing of losses? a True b False c Partly True d None of the above Ans: C Question No.7 X and Y agree to work together as carpenters but X shall receive all profit and shall pay wages to Y. The relation between X & Y is? a Partners b Carpenters c Master and d None of the servant above Ans: C Question No.8 Cardinal law of Partnership is? a Business b Sharing of Profits c Agreement d Mutual Agency. Ans: D

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