Partnership features

Features of a partnership

1. Partnership Section 8 Objective 1 & 2 Define a partnership business State the features of a partnership

2. Partnership is a Business organisation owned by two or more persons called partners for the purpose of making a profit Potential business persons choose to form a partnership company They choose to do so rather than forming a sole trading company or corporation because The skills and the experience of partners are combined It is easier to form Decision making is easier of the freedom from observing government regulations and restrictions

3. Partnership Features of a partnership company -Voluntary association Where Two or more persons coming to together to form a partnership company voluntarily and not by force (agreement can be made by a handshake) They continue in the business as long as they like and leaves the company freely

4. Partnership Features of a partnership company – Voluntary association

5. Partnership Features of a partnership company – mutual agency Where Each partner can act or do business on behalf of the partnership company The business conducted by any partner on behalf of the company is binding (that is all partners are bound into the contract)

6. Partnership Features of a partnership – mutual agency

7. Partnership Features of a partnership – unlimited liability Where Each partner is personally and individually liable for all partnership liabilities Creditors first use the partnership assets to settle claims If the partnership assets are insufficient, they will seek settlement of claims from any of the partners personal resources

8. Partnership Features of a partnership – unlimited liability

9. Partnership Features of a partnership – limited life Where A partnership company may end voluntarily at any time for example when a new partner is admitted a partner withdraws It may also end involuntarily by The death of a partner Incapacity of a partner

10. Partnership Features of a partnership – limited life

11. Partnership Features of a partnership – Co-ownership of property Where Partnership assets are owned jointly by the partners of a company If for some reason the partnership company has to close down, each partner has claim on the total assets equal to the balance on his or her respective capital accounts

12. Partnership Features of a partnership – Co-ownership of property

13. Partnership

14. Partnership