Question

Write short note on the following.
Type of partnership firm.

Answer 1

Partnership firms can be classified into the following categories:
i. On the basis of duration:
a. Partnership at will: This partnership exists as long as the partners wish to carry it.
b. Particular partnership: This partnership is formed to accomplish a particular project.

ii. On the basis of liability:
a. General partnership: Under this partnership, the partners have unlimited liability. Also, its registration is optional.
b. Limited partnership: Under this partnership, the liability of the partners is limited to the share agreed by them in the
partnership agreement.
iii. On the basis of registration:
a. Registered partnership: This partnership is registered under the Indian Partnership Act 1932.
b. Unregistered partnership: This partnership is not registered under the Indian Partnership Act 1932.