Partnerships

What is a partnership?

• A partnership is a legal agreement for renting property.
• A partnership is when two or more people come together to reach a common goal

• A partnership is a type of sole proprietorship.
• A partnership is a form of government organization.

What are the two types of partnerships

• General Partnership and Limited Partnership
• Limited Liability Company and General Corporation
• Sole Proprietorship and Joint Venture
• Partnership and Corporation

What is a general partnership?

• A general partnership is a franchise agreement between a business and an individual.
• Within a general partnership, the responsibility is divided between two or more people who agreed to run the business

• A general partnership is a sole proprietorship with multiple employees.
• A general partnership is a type of corporation with limited liability.

What are two advantages of a general partnership?

• Profits are shared equally between partners

• Limited liability for partners.
• work load can be shared among partners

• Higher potential for personal profit without sharing.

What are two disadvantages of a general partnership?

• With profits split, individual earnings may reduce.

• Equal profit sharing among partners
• No formal agreements required
• Partners are responsible for the business' debt.

What is a limited partnership?

• A limited partnership requires all partners to have equal liability.
• A limited partnership has only general partners who manage the business.
• A limited partnership is one with at least a general partner and one or more limited partners.

• A limited partnership is a type of corporation with shareholders.

Which on of these is true for limited partnerships?

• In a limited partnership, limited partnerships share liabilities of the business, however it is limited to their capital contribution

• General partners have limited liability.
• Limited partnerships require at least three partners.
• Limited partners have full liability.

What is required for a

partnership

• No formal agreement is required.
• At least two partners and a partnership agreement.
• A verbal agreement is sufficient.
• Only one partner is needed.

What is enforced if there's no partnership deed?

• The Indian Partnership Act, 1932 is enforced.
• The Companies Act, 2013 is enforced.
• The Limited Liability Partnership Act, 2008 is enforced.
• The Indian Contract Act, 1872 is enforced.

What are two advantages of a limited partnership?

• Limited partners can attract more investors

• Strict management hierarchy required.
• Easier to raise funds from investors seeking limited involvement

• No tax benefits for limited partners.