A partnership is an arrangement where entities and/or individuals agree to cooperate to advance their interests. There are two types of partnerships: general partnerships and limited partnerships. In a general partnership, all partners are equally responsible for business debts and liabilities and can be involved in management. In a limited partnership, general partners are personally liable for debts and involved in management, while limited partners are investors who do not participate in management.
2. Partnership:
A partnership is an arrangement where entities and/or individuals agree to
cooperate to advance their interests.
The a partnership is formed between one or more businesses in which partners
colabor to achieve and share profits or losses.
3. civil law systems
A partnership is a nominate contract between individuals who, in a spirit
of cooperation, agree to carry on an enterprise, contribute to it by combining
property, knowledge or activities, and share its profit.
Partners may have a partnership agreement, or declaration of
partnership and in some jurisdictions such agreements may be registered and
available for public inspection.
4. limited partnership (LP):
In which certain limited partners relinquish their ability to
manage the business in exchange for limited liability for the partnership's debts,
limited liability partnership (LLP):
In which all partners have some degree of limited liability.
7. Limited Partnership
● In a limited partnership, one or more partners are general partners, and one or
more are limited partners.
● General partners are personally liable for the business's debts and judgments
against the business; they can also be directly involved in the management.
Limited partners are essentially investors who do not participate in the company's
●
management
8. BENEFITS:
Collaboration
●
Tax Advantages
●
Simple Operating structure
●
Flexibility
●
Uniform law
●
Acquisition of capital
●
9. Drawback:
Conflict with Partners
●
Authority of partners
●
Unlimited liability
●
Vulnarability to depth or depature
●
Limited on transfor of ownership
●
10. Choosing a partnership:
Assets
●
Personality
●
Roles
●
Sharing Responsibilities
●
Goals for business
●
11. Partnership Agreement:
It can be a verbal or written.
In the written it should specify:
● Name and address
Duration of partnership
●
Purposeodf business
●
Partner's contribution
●
Partners compensation
●
Management Authority
●
Work hours and vacation
●
Partner Withdrawal
●
13. RESPONSIBILITIES
* Partners must report and turn over to the partnership
* Partners are not allowed to conduct business that competes with the partnership.
* Each partner is responsible for contributing his or her full time and energy to the
success of the partnership.