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FIRM The firm is a constituent element of an industry. Firms of different sizes , location, ownership, efficiency constitute an industry. The immediate environment of a firm is limited to the industry to which it belongs. Firms come under organization and falls in to the sub-classification Non-corporate enterprise. The non corporate Enterprise is divided in to 1) Partnership firm and 2) Joint Hindu family Firm Definition: According to section 4 of the Indian partnership Act 1932 “ Partnership is the relation between persons who have agreed to share the profits of a business carried on by all or any one of them acting for all “ Essential Characteristics of Partnership Firm 1.Agreement : Partnership is the result of an agreement between 2 or more persons. It may be oral or write. It must satisfy all the requirements of a valid contract. 2.Bussiness : The ultimate aim of the agreement is to do lawful business or profession. An illegal act...
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