Corporate Law

Partnership Explanation | Types | Advantages | Dis-Advantages

Types of Partnership

This article is for the classification of Types of partnership and advantage and disadvantage of partnership. Before doing that kind of business structure all partners should have knowledge of it. so can run the business as per their suitability.  As the main concept of partnership is when more than two people come into one place for doing business with the aim of earning a profit, But if we focus for the duration of business or responsibility, then kind of partnership will change from one category to other.

Types of Partnership  By categories

Project Based

  • General Partnership
  • Particular Partnership
  • Joint Venture

Liability based

 

  • Limited Liability Partnership
Advantages of Partnership
  • Multiple creative skilled Mind
  • Healthy Capital
  • Easy for creation and Establishment
  • Borrowing Facility
  • The large area of Operation
  • Management
  • Assignment of the task as per skills
  • Contribution of Loss
  • Public Trust
  • Business Secret
  • Easy to change nature or type of Business
  • Simple Dissolution  Procedure
Disadvantages
  • Limited Capital as compare to Companies
  • The personal act of Partner effect
  • Partner’s disputes
  • No facility of Nomination
  • Business Secrets and Ideas Threats
  • Limited duration

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