Concept of Partnership Business Structure

When the quantum of business is expected to be moderate and the entrepreneur desires that the risk involved in the operation be shared, he or she may prefer a partnership. A partnership comes into existence when two or more persons agree to share the profits of a business, which they run together.

This business may be carried on by all or by any of them acting for all. Those who, thus, enter into an agreement are individually called as ‘partners’ and collectively they are called as ‘firm’.  Partnership is the outcome of a voluntary agreement between the persons, who after the agreement has been arrived at, would be known as partners.

Learn about partnership business structure, its essential features, advantages and disadvantages over other form of business structures.

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