Answer the follow

Partnership firms are characterized by the division of ownership between two or more partners. In the Partnership Firm Act of 1932, it is defined as the relation between the persons who have agreed to share the profits of a business carried on by all or any of them acting for all. As opposed to sole trading concerns, partnership firms can be registered, a decision which is left for the discretion the partners. Following are the advantages of registration –

• Unlike an unregistered firm, a registered firm can file a suit in the court of law against third party.

• In a registered firm it is possible to file a case against other partners regarding loans they owe to the firm.

• Any partner can file a case against the firm or other partners for the dissolution of the firm or for the settlement of accounts.