Partnership Firm
Definition
A business owned by two or more people who share profits, losses and management under a partnership agreement. Partners are typically personally liable for the firm's obligations unless it is a limited liability partnership.
Related Terms in Business Terms
Limited Liability Partnership (LLP)
A business structure combining the flexibility of a partnership with limited liability for its partners, so a partner's personal assets are generally protected from the firm's debts. It is a separate legal entity.
Private Limited Company
A privately held company whose shareholders have limited liability and whose shares are not offered to the public. It is a separate legal entity, a common structure for growing businesses in India and elsewhere.
Working Capital Loan
Financing used to fund day-to-day operations — inventory, payroll, payables — rather than long-term assets. It bridges timing gaps between paying suppliers and collecting from customers.
Term Loan
A loan repaid over a fixed period in regular instalments, typically used to buy long-term assets or fund expansion. It carries a set interest rate and maturity.
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