Hello students today we’ll be doing the sixth chapter of commercial studies which is partnership in this chapter will be defining partnership stating the features of partnership describing the merits of partnership explaining the demerits of partnership describing partnership did explaining registration of partnership firms discussing the types of partnership and finally describing the types of partners. in the previous chapter we learned about sole proprietorship and Hindu Undivided family business in this chapter we will be dealing with partnership firms and understanding them better the partnership firm of business is an extension of sole proprietorship which means if Rome is unable to meet the financial and managerial requirements of growing business of RV cakes she takes a partner vijay to support her in business. A partnership therefore is a voluntary Association of two or more persons who agreed to carry on some business jointly and share its profits and losses Roma cakes becomes partnership firms RV cakes when Roma and  vijay out of their own free will choose to become partners in the firm they also decided to share the profits and losses off RV cakes. Roma and vijay are individually call s partners and collectively they are known as a firm the name under which the carryout business is called firm name so your RV cake is the firm name. Definition of partnership, partnership is the relation between two persons who have agreed to share profits off a business carried on by all or any one of them acting for on this means partnership is a relation between Roma and vijay who agreed to share profits of the business RV cakes. the business may be conducted by both Roma and Vijay or only Romo on behalf of Vijay and the firm next we move on to the features of partnership the first feature of partnership is two or more persons Roma cannot enter into a partnership herself therefore there must be two or more people to firm a partnership firm Roma can have maximum 20 partners in her business but if it is a banking form maximum number of partners is ten. RV cakes a firm cannot become partner of any other firm letters a YUM bakery. but vijay and roma  can join YUM bakery as partner  the second feature of partnership is agreement partnership is an agreement between Roma and Vijay this agreement could be oral or in writing the third feature of partnership is lawful business a partnership can be formed only for the purpose of carrying  on legal businesses illegal activities like theft  extra is not partnership. if Romo and her mother join me on a house without getting on a business it is not partnership the forth feature of partnership is sharing off profits. the profits of RV cakes is shared between Roma  and Vijay in an agreed ratio here we can see that roma has sixty percent share in profits whereas Vijay has only forty percent share in profits similarly losses are also shared in an agreed issue this ratio is similar to the ratio in which profits shade which means roma has sixty percent Share in losses and vijay  has forty percent Share in losses the fifth feature of partnership is mutual agency every partner is an implied agent of the other Roma and vijay major both are responsible for acts performed by each of them on behalf of the firm which is our RV cakes the sixth feature of partnership is at Utmost good faith Roma and vijay should have mutual trust and confidence in each other Roma and vijay just should keep no secret from each other. The seven feature of partnership is unlimited liability person sets of Roma and Vijay can be used such as roma’s  jewellary and vijays bike can be used to take loans from banks. The eight and the final feature of partnership is a restriction on transfer of interest. the vijay can transfer his share in RV cakes to Seema only if it is approved by roma which means it should have roma consent thank you my dear students in the next module will be learning the distinguish between partnership and sole proprietorship firms.