Partnership

Question 1

What is a partnership?

Answer 1

A partnership is a contract between 2 or more people, but not more that 20, who agree to contribute their money, labour or skills to a common stock in order to run a business and have mutual profits.

Question 2

Essential of partnership.

Answer 2

1. Contribution to the partnership
2. Joint benefit
3. Objective must be the making profit.
4. Lawfulness
5. Intention of the parties

Question 3

Rights of the partners?

Answer 3

1. The partners have the right to the net profits and other compensation
2. Partners have the right to the carrying on of business, the control and the management thereof.

Question 4

What are the duties of partners?

Answer 4

1. Contribute
2. Accountable for the other parties
3. Carrying on of the business honestly and carefully.
4. Good faith
5. Share in losses

Question 5

Termination of the partnership?

Answer 5

1. Agreement (if both parties agree to the termination).
2. Court order
3. Illegality and imposibility
4. Expiration of time and conclusion of the business.
5. Change in membership

Question 6

Termination of the partnership?

Answer 6

1. Agreement (if both parties agree to the termination).
2. Court order
3. Illegality and imposibility
4. Expiration of time and conclusion of the business.
5. Change in membership