From the view point of liability and duration, how can you classify partnership?
Partnership can be classified on the basis of viz., liability and duration.
(i) On the Basis of Liability
(a) General Partnership In a general partnership, the liability of each partner is unlimited, it means that the firm’s creditors can realise their dues in full from any of the partners by attaching their personal property if the firm’s assets are found to be , inadequate to pay off its debts.
(b) Limited Partnership The liability of at least one partner is unlimited and rest may have limited liability. The liability of limited partners is to the extent of the amount of capital contributed by them.
(ii) On the Basis of Duration
(a) Partnership at Will It is a partnership formed for an indefinite period. The time period or the purpose of the firm is not mentioned at the time of its formation. It can continue for any length of time depending upon the will of the partners. It can be dissolved by any
partner by giving a notice to the other partners of his desire to quit the firm.
(b) Particular Partnership It is a partnership formed for a specific time period or to
achieve a specified objective. It is automatically dissolved on the expiry of the specified period or on the completion of the specific purpose for which it was. formed.