1. Partnership: When two or more than two persons run a business together they are partners and the deal between them is called partnership.
2. When investments of all partners are for the same time, the gain or loss is distributed among the partners in the ratio of their investments.
3.When investments are for different time periods, then equivalent capitals are calculated for a unit of time by taking ( capital X Number of units of time). And gain or loss is divided based on the ratios of these calculated capitals.
4. Working Partner: A partner who manages the whole business
5. Sleeping Partner: A partner who just invests money.