Characteristic of partnership Essay

Identify and explain any FOUR (4) characteristics of a fusion. A fusion means a military control is founded by two or to a greater extent individuals, for example like sm each(prenominal) businesses which including retail or services business. in that location are certain characteristic for fusion, the first characteristic is partnership is especial(a) life. Partnership may only established in certain course of instruction based on the partnership apprehension. Partnership is easy to be drive out if one of the partner is death, bankruptcy or do non send out certain responsibleness if there is no such intellect is made. When a partner is being withdraws or added, the business should make a new partnership agreement if they wish to continue operate in partnership. This partnerships business can be continue if with meet provisions and termination or withdrawal of partner in a partnership will not bring a big wedge toward ongoing business operations. In a partnership, par tners are agents, so that it is vernacular agency. A partner may legally bind to the partnership agreement that in line with the partnerships operations.Before start a partnership, it is very important to know their potential partnerships is because most partnerships agreement micturate un contain liability for its partners. A partner may limit another(prenominal) partners ability enter into contracts on the companys behalf, however this limitation is only applies if the third party is aware of the limitation. It is their responsibility to in lick third parties regarding the ability of their partner which is limited enter into contracts. Third, partnership is infinite liability, this is because partners involved may use their personal assets to fulfill the partnership debts when the partnership cannot achieve its obligations. A partner may held individually for reasonable to the payment of creditor if another partner is insufficient assets to meet the share of the partnerships d ebt.General partnership is mean a partnership which all of the partners are individually liable. There are two classes of partners in limited partnership, it is happened when investors do not want to risk their asset and do not actively involved in the business. A limited partnership must include at least one general partner who maintains unlimited liability. The liability of other partners is limited to the amount of their investments. Therefore, they are called limited partners. in addition that, partnership is ease of formation when compare to other business because it is less(prenominal) requirement to start up. It is also relativelack of regulation delinquent to govermental regulation. Reporting requirement are mainly in written form that cater for corporation. Although the number of sole proprietors and partnerships exceeds the number of corporations, the level of sales and simoleons generated by corporations are such(prenominal) greater. Decision making is tend to puzzle out well among partnership, if there is large number of partners that involved in business will make the decision making process become much more difficult.