what is partnership

               WHAT IS PARTNERSHIP?

PARTNERSHIP can be defined as the coming together of two to twenty people to setup and manage a business and sole aim of making profit.

it is mostly formed by an association of two to twenty people,who agree to contribute their capital or skill and established a business enterprises.

                   What make a partnership.

1. Relationship among people carrying on a business.

2. The aim of the member must be to make profit.

3. Members must participate, that is all members are in involved in the management of the business.

                   Features of partnership.

1. The partnership is own by two to twenty people.

2. The aim of the partners must be to make profit.

3. The needed to  capital raised the business is provided by the partners

4. The partners have unlimited liabilities.

5. The business is controlled and manage by the partners.

6. The existence of partnership depends on the agreement signed by the partners.

Deed of agreement:- this is a document drawn up to clarify the position of partners. 

                    Advantage of partnership.

1. The liability of partnership is unlimited

2.there is better chance of continuity because the deaths of a partner may not lead to end of partnership/business.

3. There is privacy because partners don't publish annual account for public review.eg, publishing on dailies.

4. Skill and talent of the members increase efficiency in production.

5. 

                 Disadvantage of partnership.

1. The partners are liable for debt of the partnership.

2. It is not legal entity.it cannot sue and can't be due.

3. Death or bankruptcy bring end to the business.

4. Unable to raise up sufficient funds.partners cannot invite the public to raise capital.

5. Disagreement between partners can also bring the business to an end.

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