Aptitude
Introduction to Partnership
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Partnership: It refers to a business association between two or more than two persons who run a business together and share the total profit at an agreed proportion.
The persons who enter into a partnership are called partners.
Working partner: A partner who is actively involved in the business and manages the business is known as an active partner.
Sleeping partner: A partner who invests money but does not involve or look after the business is known as a sleeping partner.
Simple partnership: It refers to a partnership in which each partner invests capital for the same period.
Compound partnership: It refers to a partnership in which the partners invest capital for different periods.
Profit is directly proportional to Time and Investments.
- Profit ∝ Time
- Profit ∝ Investments
- Profit ∝ (Time × Investments)