1- General Partnership:
In this kind of partnership the liability of all the partners is unlimited. It means the creditors of the firm can recover their dues from the personal properties of the partners. In general partnership every partner has equal rights to take part in the management of the business. In Pakistan most of the firms are organized as general partnership. General partnership is further divided into two kinds.
• Partnership at will:
This type of partnership is neither for a fixed period nor for a specific purpose. It continuous it's business for any length of period depending upon the will of the partners. According to section 7 of the partnership Act 1932, partnership at will is defined as "Where no provision is made by contract between partners for the duration of their partnership, or for the determination of their partnership". A partnership at will can be dissolved at any time by any of the partners giving notice of their willingness to dissolve the firm.
• Particular partnership:
When a partnership is formed for certain period of time or for the completion of specific projects, it is called particular partnership. When the work is completed, or the period specified expires, the partnership comes to an end.
2- Limited Partnership:
In this partnership, the liability of the partners is limited to their invested amount. It means the private properties of the partners are safe. Business debts are paid by the sale of business assets. There must be at least one partner with unlimited liability in limited partnership.
In this kind of partnership the liability of all the partners is unlimited. It means the creditors of the firm can recover their dues from the personal properties of the partners. In general partnership every partner has equal rights to take part in the management of the business. In Pakistan most of the firms are organized as general partnership. General partnership is further divided into two kinds.
• Partnership at will:
This type of partnership is neither for a fixed period nor for a specific purpose. It continuous it's business for any length of period depending upon the will of the partners. According to section 7 of the partnership Act 1932, partnership at will is defined as "Where no provision is made by contract between partners for the duration of their partnership, or for the determination of their partnership". A partnership at will can be dissolved at any time by any of the partners giving notice of their willingness to dissolve the firm.
• Particular partnership:
When a partnership is formed for certain period of time or for the completion of specific projects, it is called particular partnership. When the work is completed, or the period specified expires, the partnership comes to an end.
2- Limited Partnership:
In this partnership, the liability of the partners is limited to their invested amount. It means the private properties of the partners are safe. Business debts are paid by the sale of business assets. There must be at least one partner with unlimited liability in limited partnership.
