partnership for a fixed term. The partnership for a fixed term comes to an end on the expiry of the stipulated period. But if the business is continued even after the original fixed period, it automatically becomes a partnership at will. As such it will be terminated at the will of any partners, giving notice of his intention to do so.
Types of Partnership Partnership at will Partnership for fixed period of time Limited Liability Partnership (LLP) Particular partnership commerce - - . . PM iii. Particular partnership When a partnership is formed to carry on a particular venture or a business of temporary nature, it is called particular partnership.
Such a firm lasts so long as the business agreed upon is not completed. In other words, it comes to an end on the completion of the particular venture. If such a firm is not dissolved and it begins to undertake new activities not originally contemplated, the rights and obligations of the partners continue to be the same as in the original partnership and it will continue till a partner gives a notice of his intention to dissolve the firm. iv.
Limited Liability Partnership (LLP) Limited Liability Partnership is very popular in the service sector and in the small scale business enterprises. Limited liability partnership means for paying the debts of the firm only the assets of the business will be utilized and not the personal properties. It is prevalent among popular professionals such as Cost Accountants, Company Secretaries, Chartered Accountants, Lawyers, Architects, Engineers and Doctors. Limited Liability Partnership is available in countries like U.S.A, Singapore, Thailand and U.K.
It came into existence in India since . . Types of Partners i. Active Partner A partner who takes an active part in the conduct of the partnership business is known as an active partner.
Though every partner is entitled to manage its affairs, all may not do so. ii. Sleeping Partner or Dormant Partner Such a partner contributes capital and shares in the profits or losses of the firm but does not take part in the management of the