Classifications of partnership business as to extent of Subject Matter
When two or more persons agreed to form a business and run by them with a view to earning the profit is called partnership business. In the broad sense, partnership business is one which formed by two to twenty persons but in case of the banking business, it is two to ten based on a mutual agreement for the sake of earning a profit.
Classifications as to extent of its subject matter:
Universal partnership: A limited partnership allows each partner to restrict his or her personal liability to the amount of his or her business investment. It is a partnership formed by persons who agree to contribute all of their individually owned property to the partnership.
The universal partnership of all present property comprises the following:
- Property which belonged to each of the partners at the time of the constitution of the partnership.
- Profits which they may acquire from all property contributed.
The universal partnership of profits comprises all that the partners may acquire by their industry or work during the existence of the partnership.
Particular partnership: A partnership formed for a single transaction or enterprise as distinguished from one organized for carrying on a general business. It is a partnership formed for a single transaction or enterprise as distinguished from one organized for carrying on a general business. It has some objectives which are as follows-
- Determinate things
- Their use or fruits
- Specific undertaking
- Exercise of profession or vocation