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What is the use of partnership?

To raise capital for a venture among a limited number of people To allocate the risk borne by partners To get different (preferrential) tax treatment for partnership income


What is the capital required to start a Partnership firm?

There is no limit on the minimum capital for starting a Partnership firm. Therefore, a Partnership firm can be started with any amount of minimum capital.


A partnership will take a carryover basis in an asset it acquires when?

a partner owning 25% of partnership capital and profits sells the asset to the partnership


What are the opportunity costs and benefits for partnership?

Benefits: Share in responsibility, Easier to raise capital together. Opportunity Cost: Share in revenue, Possibility of the partner not putting in enough or as much effort.


What is an example of an initial capital contribution in a business partnership?

An example of an initial capital contribution in a business partnership is when one partner invests money or assets into the business at the beginning of the partnership to help start and operate the business.


What is partners' capital?

'capital partners' generally work as a unit to unite indvidual assets or capital for investment and shares liability, prifit loss etc according to the partnership agreemnets. there could several types of capital partnership, relying on the field od operation.


The capital for the business is provided by one or more individual?

Partnership


How do you show capital employed in partnership balance sheet?

Capital employed is shown as partners share capital in balance sheet or partners capital statement.


What is the difference between a partner loan and a capital contribution in a business partnership?

A partner loan is money borrowed by a partner from the partnership, which needs to be paid back with interest. A capital contribution is money or assets invested by a partner into the business, which becomes part of the partnership's equity.


Why sole porprietorship is more popular then partnership in Pakistan?

Sole proprietorship is popular than partnership because of the little capital outlay.


The capital money for the business is provided by one or moe individual?

partnership


What is capital money for the business provided by one or more individual?

partnership