Q-1Define Partnership and explain the features of Partnership? A partnership is the relationship existing between two or more persons who join to carry on a trade or business. Each person contributes money, property, labor or skill, and expects to share in the profits and losses of the business. A partnership must file an annual information return to report the income, deductions, gains, losses, etc. Partners are not employees and should not be issued a Form W The partnership must furnish copies of Schedule K-1 Form to the partners by the date Form is required to be filed, including extensions.
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Fred and Anne have been runing in partnership for several old ages, running a concern that renovates flats for rental. Occasionally Fred, who is responsible for fixs, has failed to acquire pressing fixs carried out when they are notified by renters. One of the renters, Lisa, has announced that she intends to raise a legal action against Fred, Anne and the partnership on the land that the floor of her life room was allowed to go icky and she fell through it and injured her leg. Inspection confirms the floor is rotten, and Lisa has grounds that she notified this to Fred many months before. When Fred heard about this legal action, and in an attempt to get away liability , he instantly gave notice to Anne that he wished to end the partnership. Anne spends a batch of her clip at societal maps where she does a batch of networking.
If you're considering a business partnership as a way to grow your company, you may want to weigh the advantages and disadvantages of a partnership. A business partnership may be one of the paths you've considered to help grow your business or to answer your current business needs. Becoming aware of the advantages and disadvantages of a business partnership is a crucial first step if you're thinking of venturing into a partnership.
Critically consider the advantages and disadvantages this form of business organisation would have over the present form of partnership regulated under the Partnership Act According legal personality to partnerships would produce an overall positive effect. It is not, however, entirely without disadvantages. Legal personality cannot be properly analysed without an understanding of its historical and social consequences.