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.
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.
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.
There are two types of partnerships:
GENERAL PARTNERSHIPS :
In this standard form of partnership, all of the partners are
equally responsible for the business's debts and liabilities. In addition, all partners
are allowed to be involved in the management of the company.
● 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
Simple Operating structure
Acquisition of capital
Conflict with Partners
Authority of partners
Vulnarability to depth or depature
Limited on transfor of ownership
Choosing a partnership:
Goals for business
It can be a verbal or written.
In the written it should specify:
● Name and address
Duration of partnership
Work hours and vacation
* All partners have an equal share in the profits and in loss
* Any partner who makes a payment for the partnership beyond its capital, or makes a
loan to the partnership, is entitled to receive interest on that money.
* All partners have equal property rights for property held in the partnership's name.
* All partners have an equal right in the management and conduct of the business.
* All partners have a right to access the books and records of the partnership's accounts
and activities at all times.
* No partner may be added without the consent of all other partners.
* 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.