David Marks Staff asked 4 years ago

What is a general partnership

What is a general partnership, a limited liability company, and direct and indirect discrimination?

Examples for each of these concepts will be useful. I’d also like to understand the advantages and disadvantages of a limited liability company. Thanks!

1 Answers
David Marks Staff answered 4 years ago

These concepts are as follows:
Partnership- partnership is a relationship between persons who have agreed to share the profits of the business carried on by all or any of them acting for all with unlimited liability. For the formation of partnership firm minimum 2 persons are required. Partnership deed is a charter of the firm which denotes its scope of operation.
For example- A and B enter into partnership with a profit sharing ratio 2:1. Here a will be entitle to get 2 times of profit than B.
Limited liability company- a company is a body corporate formed under the act has legal separate entity from its members, having perpetual succession and liability of its members shall be limited. Limited liability means you have to pay as much as you have agreed to pay. The liability of the company is always unlimited but liabilities of member can be limited by shares, guarantee, and by both.
Advantages-

  • Infinite membership
  • Perpetual succession
  • Separate property
  • Limited liability of members

Disadvantages-

  • Possibility of frauds
  • Loss of privacy
  • Corporate disclosure.

Discrimination- the concept of discrimination is totally based upon the equality act 2010. According to this act nobody has right to discriminate other on the basis on his/her protected characteristics. This is totally unlawful act. The discriminate may be of two types that are direct or indirect.
Direct discriminate involves treating someone less favorably due to someone’s different characteristics. These characteristics include age, race, religion, belief, and sex. On the other hand indirect discrimination involves when in an organization there is policy and rule which applies to everyone but may have adverse affect on some people. This is called indirect discrimination
For example- Dismissal from job due to his/her cast is direct discrimination. But if it is mentioned in the policies that people belongs to black category cannot take employment would be indirect discrimination