Nazia and Shazia are the partners in a firm providing counselling services

cbse
formsofbusiness

#1

Nazia and Shazia are the partners in a firm providing counselling services. For improving the interiors of their office they required bank loan. Razia, Nazia’s friend requested a bank manager to grant loan to Nazia’s firm, actively participating in the negotiation process for the deal. The bank extended credit to the firm for the stipulated period.
(i)State the liability of Razia.
(ii)Identify the values promoted by partnership form of organisation.


#2

(i)Razia will be liable for repayment of such debt as if she is a partner of the firm, if Nazia’s firm is not able to repay.
(ii)Values promoted by partnership form of organisation are mutual understanding, cooperation and team spirit, risk sharing, optimum utilisation of resources for productive relationship among the partners.