Partnership Account Flashcards
1
Q
Partnership
A
The association of two or more individuals carrying on business jointly for the purpose of making profits. S.3 (1) of IPPA
2
Q
Nature of partnership
A
- Firm is distinct from partners
- Formed by formal agreement
- Partners are jointly and severally liable
- Unlimited liability
- Fiduciary relationship between partners
- Every partner is an agent of the firm
3
Q
General partnership
A
Two or more partners with unlimited liability
4
Q
Limited Partnership
A
One or more general general partners and several limited partners
5
Q
Limited liability partnership (LLP)
A
General partners who are not liable for the actions of either partners or employees. But they are personally liable for business debts.
6
Q
Limited liability companies (LLC)
A
Have legal and tax structures independent from owners, and they enable owners to keep personal assets separate from business debts.
