Ideal Partnership / main features
An ideal partnership is a word used for a successful business. It is a business where all the partners work honestly and for a common purpose. There is a perfect understanding among them and they work in harmony.
The partners should be able to manage all business activities effectively. There should not be scarcity of funds. All these things are possible only when the choice of partners is correct. A large number of firms have failed because of mistrust and suspicion among partners.
Essentials of an Ideal Partnership :
Essentials of an ideal partnership are as follows:
(i) Understanding among Partners: There should be a perfect understanding among partners. They should not doubt each other. Every partner should try his best to promote a common cause. The partners should be persons who know each other well for fairly a long period.
(ii) Good Faith: The partners should have faith in each other. No partner should try to deceive others. They should trust each other and should feel that their interests are common. It is necessary that the number of partners should be less. If their number is more, then there may be suspicion and disharmony among them.
(iii) Sufficient Capital : The capital requirements of the business should be met timely. Generally, long-term funds should be provided by the partners themselves and short-term funds may be arranged from other sources. If the partners are not able to arrange sufficient funds, then continuity of the business will be doubtful. There should be some check on personal drawings also.
(iv) Long Duration: The duration of the partnership should be long so that the business may be properly set up. The partners get time to understand each other and can create a team spirit. There should be a constant endeavor of all the partners to extend the life of partnership and create an atmosphere of mutual faith and understanding.
(v) Balance of Skill and Talent: The partners should have an experience of all fields. One should be expert in financing, another in marketing and the third in production. If all are expert in one field only then other functions may be” neglected. There should be a balance in skill and talent so that all the functions are properly attended.
(vi) Written Agreement: The agreement among partners should be in writing. The duties and powers of various partners should be clearly defined and should be in writing. This will help in avoiding misunderstanding at a later date.
(vii) Registration: Though the registration of a firm is not compulsory but still it should be got registered with the Registrar of Firms. An unregistered firm cannot sue outsiders, although the outsiders can sue the firm.
