Public Opinion on Partnership under the Indian Partnership ACT 1932

Abstract

Partnership is considered as the relation between the persons who have agreed to share the profits of a business carried on by all or any of them acting all . Section 4 of the Indian Partnership Act, 1932 deals about Partnership.In this papaper it is analysed that the division of profits is considered to be a essential element for the existence of partnership which also includes the sharing of profit and losses . A Partnership Agreement is defined as an arrangement that is agreed by all parties to the transaction and is a successful method of helping each of the partners to set up mutually acceptable goals, to share all the profits earned in the business equally. Partnership is a specific application of the principles of agency. Agreement of partnership need not be express , but can be inferred from the course of conduct of the parties to the agreement. Registration of the company is not mandatory it’s an option according to the Indian Partnership Act ,1932. Partnership is one of the oldest forms of business relationships and it is also a special kind of contract , which is created out of an agreement. An empirical study is done where the samples are collected by using probability sampling and random sampling method. Samples of approximately 1592 respondents are collected . Using the spss tool the value of the chi square is found and the output of the research is chi square is that there is no significant association between the there is no association between the awareness of the rights and duties of partners and age and there is no association between partners entitled to share all the profits earned in business equally and gender. It is concluded that Partnership is a good form of doing business by making partners and achieving big goals . Nowadays Partnerships are still preferred by professionals , small trading and business enterprises.