PARTNERSHIP

1. Definition

1.1. A business organization in which two or more individuals manage and operate the business. Both owners are equally and personally liable for the debts from the business.

2. Advantages

2.1. Partnerships are relatively easy to establish. Brings greater financial capability to the business. Combines special skills, expertise and experience of the partners.

3. Disadvantages

3.1. There is unlimited liability: Disagreement among the partners can lead to problems for the business. There is no continuity of existence

4. CHARACTERISTICS OF PARTNERSHIPS

4.1. Division of Profits or Losses Co-Ownership of Contributed Assets Limited Life Unlimited Liability

5. Kinds of Partnerships

5.1. General Partner Limited Partner

6. Kinds of partners

6.1. General partner. Industrial partner Managing partner Liquidating partner Dormant partner Silent partner Secret partner Nominal partner or partner by estoppel

7. Rights of a Partner

7.1. Right of the partner to take part in the day-to-day management of the firm. Right to be consulted and heard while taking any decision regarding the business. Right of access to books of accounts and call for the copy of the same. Right to share the profits equally or as agreed upon by the partners. Right to the use of partnership property exclusively for partnership business only not himself. Right as agent of the firm and implied authority to bind the firm for any act done in carrying the business. Right to prevent admission of new partners/expulsion of existing partners. Right to continue unless and otherwise he himself cease to become partner. Right to retire with the consent of other partners and according to the terms-and conditions of deed.

8. Duties of a partners

8.1. To carry on the business to the greatest common advantage To be just and faithful to each other To render true accounts To work without remuneration To indemnify for loss caused by fraud or willful neglect To hold and use partnership property exclusively for the firm Not to carry on any competing business

9. Dissolution

9.1. In Accordance with the Agreement In Violation of the Agreement By Operation of Law By Court Order

10. Winding up

10.1. Article 1829: on dissolution the partnership is not terminated, but continues until the winding up of partnership affairs is completed. Definition : The process of selling all the assets of a business, paying off creditors, distributing any remaining assets to the principals or parent company, and then dissolving the business. Winding up can refer to such a process either for a specific business line of a partnership or to the dissolution of a partnership itself.