|
|
This is only a preview of the paper
Click here to register and get the full text.
Existing members click here to login
|
|
|
PARTNERSHIPS By definition a Partnership is the coming together of two or more individuals for their common good. Like the 'Sole Proprietorship', the Partnership is almost totally exposed to third party actions. Legally, a Partnership can often be formed with no written agreement, however, one would be ill advised not to set-out the rights and obligations of the partners. If no such agreement is in existence, standard legal interpretations, for the appropriate jurisdiction, will generally be imposed unless there is clear evidence that the partners are subject to their own set of criteria. One point that should always be born in mind is that in the case of 'economic' difficulties each partner will be liable not only for his shareholding but for all partnership debts. Application Very popular, especially amongst small business enterprises. In certain jurisdictions, in particular the United Kingdom, there can be some tax benefits. Generally, firms of lawyers and accountants are forced to adhere to this legal structure as a form of protection for their clients. Advantages It brings together two or more people who have a personal interest in the welfare of the business enterprise. A partnership is generally seen as more professional than a sole proprietorship. Disadvantages There is always the potential of partnership disagreements.
Approximate Word count = 830
Approximate Pages = 3.3
(250 words per page double spaced)
|
|
|
|
|
|