IntroductionIn the present scenario where large scale business needs huge capital and managerial abilities, a businessman alone cannot provide all the capital. In such a case, a businessman may choose to include two or more similar-minded businessmen in order to pool in abilities and resources in a partnership. Such partnerships agree to share profit and losses in a ratio agreeable to all of the partners. This leads to formation of a partnership firm.
A partnership firm will involve bringing together resources such as financial, technical, and other skill sets in the view to carry on a business.