If two or more person put their money together in order to carry on a certain business, then the deal is known as "PARTNERSHIP".
If the capitals are invested for different time periods, then the partnership is called "Compound partnership".
In this case profits must be divided in the ratio of the products of investment and time period.
Profits ratio is obtained by taking the ratio of product of individual investments along with Time periods.
Persons who have entered into partnership with one another are individually called 'Partners'.
In a: b the first element is called antecedent and second element is called consequent.
Ratio can be modified by multiplying or dividing its terms with the same number
Partner are two types.
A person who invests the capital into the business but does not actively Participate in the conduct of business is called Sleeping Partner.
A person who takes part in running the business besides investing the Capital is called working partner. He gets salary for his work or some percent of profit in Addition.