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Significant Features of Partnership
1) The capital is contributed by the partners and no appeal is made to the public.
2) Like the sole proprietorship, a partnership has a limited life. It may be ended at any time by the death, withdrawal, bankruptcy or incapacity of any member of the firm.
3) Each partner acts as an agent of the firm with authority to enter into a contract or purchase of or sale of goods or services.
4) Each partner is personally responsible for all the debts of the firm. Thus the liability of the ordinary members of the firm is unlimited.
5) Responsibility, profit and losses are shared on the agreed basis.
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