2. number of partners
Legal entity
Sharing profit and
loss
Unlimited Liability
Agreemen
t
Capital
Mutual
Confidence
Transferability of Share
3.
4. A partnership may be classified
according to the following:
a. Commercial Partnership
- is one engaged in either trading,
manufacturing, or servicing business.
The income tax on the earnings of
business id paid by the partnership.
1. As to its Activities
5. b. Professional Partnership
- is one engage to exercise of
vocation or profession. (e.g.,
Accounting firm, Law firm etc.) The
income tax on the earnings of the
partnership., which are distributed to
the partners, is paid by the partners
6. a. General Partnership
-A partnership where the liability of
all the partners is unlimited, they can
personally liable for the partnership
debts. It is a partnership where all
the partners are general partners.
2. As to liability of partners
7. b. Limited Partnership
- is a partnership where the liability of
one or more but not all partners is
limited only up to the extent of his
interest or capital in the partnership. In a
limited partnership, the law provides
that there must be at least one general
partner.
8. a. Partnership at will
- is one in which there is no fixed
term for its existence. It can be
terminated anytime.
3. As to Duration of the
Partnership
9. b. Partnership with a fixed term
- in one formed for a specific purpose,
undertaking or venture and is terminated upon
completion of the undertaking of
accomplishment of the objective. It is also a
partnership where the partners agree on the
term of its existence.
-it becomes a partnership at will if after the
expiration of the term , the partners will
decide to continue the business.
10. a. De Jure Partnership
-one that has complied with all the legal
requirements pertaining to its formation.
b. De Facto Partnership
- one that has not complied with all the legal
requirements pertaining to its formation.
4. As to legality of its
existence
