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A partnership is segregated into different types depending on the state and where the business operates.
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In definite circumstances the partnership may be liquified and reformed away the remaining partners; however this is subject to the partnership agreement65.
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What are the advantages and disadvantages of a partnership?
Another key advantage is that costs, risks and responsibility is shared between the partners, keeping the control of the company to a minimum. The main disadvantage of a partnership is the unlimited liability of the debts. All partners are liable together for the debts and other liabilities of the firm.
What can be the purpose of a partnership?
A partnership can be formed for the purpose of carrying on any lawful business. There can be no partnership for engaging in illegal acts like theft, dacoity, smuggling etc. The agreement of partnership must provide for sharing of profits of a business, among partners, in the agreed ratio. Sharing of profits is an important test of partnership.
What do you mean by partnership and limited company?
(Alan Griffiths & Stuart Wall) states “This is a form of business relationship which is usually entered into by individuals who wish to take advantage of the combined capital, managerial skills and experience of two or more people.” (p133) If you need assistance with writing your essay, our professional essay writing service is here to help!
What happens at the end of a partnership?
The period of the partnership is all the time unsure. If any partner pass away, ill-treated, withdraws, sells his interest or a fresh partner is admitted into the business, the partnership comes to finish. In partnership the mishandling of the income is raised by the partners.
Last Update: Oct 2021
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This image representes partnership essay conclusion.
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