Preview

The Characteristics of Partnership

Good Essays
Open Document
Open Document
1008 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
The Characteristics of Partnership
Partnership is one of the most popular types of enterprise in Vietnam. A partnership is an unincorporated association of two or more individuals to carry on a business for profit. Many small businesses including retail, service, and professional practitioners, are organized as partnerships. Like the other types, partnership contains its own features and characteristics which help to differentiate itself from the others. First of all, in terms of the number of partners, there are no less than two partners who are joint owners of the company and carry out business. In addition to general partner, there may also be limited partners. General partner is required to be individual and will be liable to all obligations of the partnership with his entire property, while limited partner will be liable to debts of the partnership only to the extent of their capital contributed to the partnership. It should be pointed out that there are restrictions on the rights of general partners. General partner cannot be sole proprietor or general partner of another partnership, unless otherwise agreed by remaining general partners. Besides, general partner is not allowed to act on his own behalf or on behalf of other persons in implementing the same business activities of the partnership for the benefit of himself or other. Also, general partner is not permitted to transfer a part or whole of his capital contribution to others. It is necessary to mention that a partnership will be given legal status from the issuing date of the certificate of business registration and that partnership is not entitled to issue any type of securities. The next characteristic of partnership is limited life. The life of a partnership may be established as a certain number of years by the agreement. If no such agreement is made, the death, inability to carry out specific responsibilities, bankruptcy, or the desire of a partner to withdraw automatically terminates the partnership. Every time a partner

You May Also Find These Documents Helpful

  • Good Essays

    HCS 567 Week 3

    • 721 Words
    • 3 Pages

    For business with two or more owners the decision may be to utilize a general or a limited partnership. The general partnership is not dependent on one person for its successes in fact all the partners have a say in how the business runs and functions as per the partnership agreement (Barringer & Ireland, 2010). This type of organization is similar to the sole proprietorship in that the income is noted on the partners’ personal tax returns as the venture files and an informational tax return only (Barringer & Ireland, 2010). The venture also has limited liquidity. Limited partnership is a modified general partnership with the modification being the addition of two different class of partners, general and limited. This venture is used when attempting to…

    • 721 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Task 310-1.2-01-06

    • 1304 Words
    • 6 Pages

    A partnership is an agreement between friends or investors to open or assemble a business. The individuals within the partnership agree by signing the agreement that is registered to continue to supply capital, knowledge and skills as well as share in the profits of the company. Partnerships require more than one sole owner. By having multiple owners this will allow the organization or business to attain investor for support of the business and or individuals who are deemed as qualified.…

    • 1304 Words
    • 6 Pages
    Good Essays
  • Satisfactory Essays

    Fi515 Week One Mini Case

    • 508 Words
    • 3 Pages

    Partnership: Business owned by two or more persons who are personal responsible for all its liabilities. The partners pay personal income tax on their share of these profits. Each partner has unlimited liabilities for all the business’s debts.…

    • 508 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Chapter 1 Finance 310

    • 1292 Words
    • 6 Pages

    Partnership  Whenever two or more persons or entities associate to conduct a noncorporate business for profit  Partners can potentially lose all of their personal assets including assets not invested because each partner is liable for the partnerships debts  Limited partnership- wherein certain partners are designated general partners and others limited partners…

    • 1292 Words
    • 6 Pages
    Good Essays
  • Powerful Essays

    P4 & M2

    • 4018 Words
    • 17 Pages

    Partnership- A type of unincorporated business organization in which multiple individuals, called general partners, manage the business and are equally liable for its debts; other individuals called limited partners may invest but not be directly involved in management and are liable only to the extent of their investments. Unlike a Limited Liability Company or a corporation, in a partnership each partner shares equal responsibility for the company 's profits and losses, and its debts and liabilities.…

    • 4018 Words
    • 17 Pages
    Powerful Essays
  • Better Essays

    ACC111 Lesson 1 Essay

    • 934 Words
    • 3 Pages

    According to Entrepreneur the definition of a partnership is “a legal form of business operation between two or more individuals who share management and profits (n.d.)”. The federal government recognizes three types of partnerships, general partnership, limited partnership and joint ventures. Legally partnerships are also great from a legal stand point. In this…

    • 934 Words
    • 3 Pages
    Better Essays
  • Powerful Essays

    Chapter 4: Barriers to Partnership Working HEALTH, SOCIAL CARE AND HOUSING PARTNERSHIP WORKING BRIEFING NOTES FOR PRACTITIONERS AND MANAGERS August 2009 Chapter 4 – Barriers to Partnership Working Contents INTRODUCTION........................................................................................................ 3 THE CAUSES AND EFFECTS OF PARTNERSHIP BARRIERS .............................. 3 PEOPLE..................................................................................................................... 5 Roles (including power)................................................................................................…

    • 2999 Words
    • 12 Pages
    Powerful Essays
  • Good Essays

    You Decide

    • 465 Words
    • 2 Pages

    Partnerships: “Two or more people share ownership of a single business.” In a partnerships business legal contract needs to be signed and understood by both parties such as “how decisions will be made, profits will be shared, disputes will be resolved, or what steps will be taken to resolve the partnership when needed.” There are 3 types of partnerships: (1) General Partnership; (2) Limited Partnership with limited liability; and (3) Joint Venture. Advantages of a partnerships profits from the business flow to the partner’s personal tax return and the business may lead to success with the help of two or more. Disadvantages may be one is responsible for another’s actions, any profits and assets must be shared, and disagreements can occur.…

    • 465 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Ways in which we can improve partnership working is being honest, unbiased, having good communication, having a polite and respectful manner and remaining professional at all times so you build a better and stronger relationship with the individuals you work with/for (treat others the way you want to be treated).Working with individuals helps identify there stealth’s and weaknesses, so that your working relationship can improve and create a good atmosphere, working part of a team is important so that when passing on information to individuals family or other care professionals is more relaxed. Other ways partnership working can be improved is by having training and making sure that you attended the training, plus making sure that you are aware…

    • 133 Words
    • 1 Page
    Good Essays
  • Better Essays

    A partnership consists of two or more (non-married people) who share ownership of one business. Each partner shares the management, the…

    • 1219 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    A partnership is a business structure where 2 or more individuals come together in order to conduct business. There are three types of partnerships, general partnerships, limited partnerships, and undeclared partnerships The partnership is constituted by a partnership agreement, where all the framework such as the contributions, share in profits, intentions, etc. are determined. In a partnership each partner is considered to be an equal co-owner of the entity, unless the partnership agreement states otherwise. Each parter pays share of taxes due in accordance to the value of their ownership, and, in case of failure, equally shares in all of the liabilities of the partnership. Thus, in a partnership, liabilities are shared but not limited. The benefit of partnerships is that general partners are only taxed once. The partnership itself pays no taxes.…

    • 1693 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    Research Paper

    • 3042 Words
    • 13 Pages

    Partnerships are business owned by two or more people who share responsibilities. The extra people can lead to easier to find funds and to do the work of the firm. No written agreement is needed to set up a partnership, though often the partners do write an agreement tailored to their particular needs. Partnerships are the most common business from in professions, such as accounting, law, and medicine.…

    • 3042 Words
    • 13 Pages
    Powerful Essays
  • Good Essays

    My role and responsibilities in working with colleagues is to ensure all the staff are happy, safe and are trained correctly. I have to ensure that all…

    • 1338 Words
    • 6 Pages
    Good Essays
  • Satisfactory Essays

    In most cases, barriers to partnership work are caused by the lack of respect amongst the parties that have regular contact with patients or involved in a patient’s care and treatment. This usually happens when there is poor communication, negative methods in service delivery to patients, one believing that only he/she can solve problems and lack of training. Therefore, in order to overcome the barriers to partnership work is by working together as a team, making sure that decisions are made collectively.…

    • 219 Words
    • 1 Page
    Satisfactory Essays
  • Good Essays

    Task 01 1.1 Partnership philosophies and its application in health and social care settings The definition of partnership according to Collins English dictionary, 1991 is equal commitment or the state of being a partner. Partnership is additionally characterized as an imparted responsibility, where all partners have a privilege and a commitment to take an interest and will be influenced similarly by the profits and burdens emerging from the partnership as characterized via Carnwell, R. what's more Carson, A. in 2008. Philosophies of working in partnership In living up to expectations in partnership, there are few philosophies of insight that support partnership working.…

    • 583 Words
    • 3 Pages
    Good Essays