Yenepoya Pharmacy College & Research Centre
Yenepoya (Deemed to be University), Deralakatte, Mangaluru
PARTNERSHIP
Dr. Summayath T
Assistant Professor
Department of Pharmacology

Table of Content
• Specific learning objectives (SLOs)
• Characteristics & types of partnership,
partnership deed and kinds of partners
• Summary
• Reference
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SLOs
• Upon completion of the teaching session student
should know the concept of partnership and kinds of
partners
YPCRC 3

PARTNERSHIP
• Two or more persons combine together
contributing to the common stock & sharing
profit or loss of the business carried on by all or
any one of them acting for all.
YPCRC 4

Characteristics of the partnership:
– Mutual & voluntary agreement
– At least two persons to commence a partnership
firm.
– Earn profit & share it
– Agreement on some business, trade, occupation or
profession
YPCRC 5

– May be carried out by all the partners or
anyone of them for all
– All have equal right
– Liability is unlimited
– Can’t transfer right without the consent of
other partners
YPCRC 6

Advantages:
– Availability of more capital, so is the size of
business & profit
– Life of business is more
– Less possibility to take wrong decision
– Better management
YPCRC 7

– Legal formalities are easier
– Financial results – no need to declare
– Quick decision
– Better human public relations
– Partners are flexible to start new business
YPCRC 8

Disadvantages
• Unlimited Liability
• Limited Life
• Difficult to raise capital
• Chances of Dispute
YPCRC 9

Partnership Deed
• The relation between the partners is created in
the form of a contract. Written contract is called
“Partnership Deed”
– Retirement/ death may end the business.
– Personal ambition – may bring
YPCRC 10

Types of partnership
1. General partnership firm
a) Particular partnership
b) Partnership at will
2. Limited partnership firm
– Not allowed in India
YPCRC 11

Kinds of partners
• Active partner
• Sleeping partner
• Nominal partner
• Minor partner
YPCRC 12

a)Secret partner
b)Partners in profit only
c)Sub partner
d)Silent partner
e)Partnership by estoppel
f) Partnership on holding out
YPCRC 13

Summary
• Partnership is the concept of doing business together (two
or more persons) contributing to the common stock &
sharing profit or loss of the business carried on by all or
any one of them acting for all.
• Written contract between partners is known as
‘Partnership deed’.
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References
• Text book of drug store & business management
by Dr. S Sambath Kumar and Dr. N Murugesh
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