MANAGEMENT

Detailed explanation-1: -A partnership, unlike a company, is not a separate legal entity from its members. It is unable to possess property, incur debts, or file lawsuits in its own name. Furthermore, the partners of a partnership firm are jointly and severally accountable for the firm’s liabilities.

Detailed explanation-2: -Concept of “limited liability partnership" It is capable of entering into contracts and holding property in its own name. The LLP is a separate legal entity, is liable to the full extent of its assets but liability of the partners is limited to their agreed contribution in the LLP.

Detailed explanation-3: -A sole trader or partnership does not have a separate legal entity.

Detailed explanation-4: -The partnership firm is not a legal entity as that of a company registered under the Companies Act. A company is separate from its shareholders but not the said position in partnership firm. This concept is also applicable for taxation purposes. In ‘Tarak Nath Sen and others V.