Q 1.

Mr. Ahmed has been working in a small company for many years and earns a living. Due to the increase in the size of his family (dependent members), the income earned now proves to be insufficient. Mr. Ahmed approaches his friend Mr. Azad, who has plans of starting a new venture. Mr. Azad is skilled, passionate and has new ideas that would enable him to start a new manufacturing venture, but lacks capital. Mr. Ahmed, who knows little about doing business, has saved money over the years and plans to invest the same in a partnership concern with Mr. Azad.

Mr. Ahmed wishes to continue his job as well as participate in the partnership concern only by investing his saved money.

Using the above case

1. A) You are required to advise and explain in detail, the nature of partnership that the above people must enter into (2.5 Marks)

2. B) List down the various clauses that need to be incorporated in the partnership deed.

   (2.5 Marks)