Corporate governance is a process set up for the firms based on certain systems and principles by which a company is governed. The guidelines provided ensure that the company is directed and controlled in a way so as to achieve the goals and objectives to add value to the company and also benefit the stakeholders in the long term.
Transparency in corporate governance is essential for the growth, profitability and stability of any business. The need for good corporate governance has intensified due to growing competition amongst businesses in all economic sectors.
There is no corporate governance in case of the partnership firms/sole proprietorships due to which the firms lack sustainable business and long term growth. This paper sheds light of the idea of implementing corporate governance in partnership firms which will not only benefit the firms but also the governing bodies like the municipal corporation, income tax department, revenue department, etc.