Partnership

What is a Partnership?

A Partnership is a type of business organization in which two or more individuals come together to manage and operate a company under a partnership agreement. This arrangement involves the co-owners agreeing to share the profits, losses, and liabilities of the business as outlined in the terms of the established partnership deed.

Short Description: A business structure where two or more individuals manage and operate a business in accordance with agreed terms and share profits, losses, and liabilities.

• Types of Partnerships: There are several forms such as general partnerships, limited partnerships, and limited liability partnerships, each offering different levels of responsibility and liability.
• Agreements: Usually governed by a partnership agreement which defines the rights and responsibilities of each partner, as well as profit and loss distribution, decision-making processes, and conflict resolution mechanisms.
• Shared Liability: Partners share joint responsibility for the debts and obligations of the partnership, though this varies with the type of partnership.

A partnership can be advantageous due to shared capital and resources but carries risks like potential disagreements and joint liability for business debts.