Virtual university Of Pakistan

Q.1 Define Partnership and explain it briefly . Answer Partnership: According to partnership acct 1932 partnership is “A type of business in which two are more than individuals agreed to share profit on agreed ratio and also acting all or on of than act for all” Partnership” is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all Persons who have entered into partnership with one an­other are called individually “partners” and collectively “a firm”, and the name under which their business is carried on is called the “firm name”. Things to Consider When Forming a Partnership 1.       Plan for the worst   One of the very first things you should think about is a buy/sell agreement. Essentially this is a discussion of what will happen if someone wants out. How assets, liabilities, equipment, clients, the company should be handled. This alone can be an incredibly co...