partnership

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Partnership

Shared ownership among two or more individuals, some of whom may, but do not necessarily, have limited liability with respect to obligations of the group. See: General partnership, limited partnership, and master limited partnership.

Partnership

A business structure in which two or more persons share in the ownership and profits and losses of the business. There are three main types of partnerships. In general partnerships, two or more partners, jointly and severally, share all profits and losses, management authority, and risk for the business. In a limited liability partnership, partners share profits and losses and divide management authority according to the company's specific structure. In case of liquidation, every partner is only liable for the amount he/she has invested in the company, much like a stockholder in a corporation. Limited partnerships have elements of both the previous structures, having both general partners and limited partners. General partners in a limited partnership must share a certain amount of profit and financial liability with limited partners according to an arrangement between them. In this situation, general partners have all management authority and unlimited liability, while a limited partner is only liable for his/her investment.

In most jurisdictions, partnerships are preferable to corporations because partnerships' profits are not taxed prior to distribution to the partners. In other words, there is no equivalent to a corporate tax on partnerships. On the other hand, partners have more legal and financial liability in case of liquidation than would shareholders and most management in a corporation.

partnership

A business owned by two or more people who agree on the method of distribution of profits and/or losses and on the extent to which each will be liable for the debts of one another. A partnership permits pass through of income and losses directly to the owners. In this way, they are taxed at each partner's personal tax rate. Compare corporation, proprietorship. See also general partnership, limited partnership, silent partner.

partnership

a BUSINESS owned and controlled by two or more persons who subscribe capital and share decision-taking as specified by a partnership agreement. Generally partners have unlimited liability for any debts incurred by the partnership and any of them may enter into contracts on behalf of the partnership. Partnerships are particularly prevalent in professional services, for example accounting, surveying and insurance. See SLEEPING PARTNER, SOLE PROPRIETORSHIP, JOINT-STOCK COMPANY, LIMITED LIABILITY.

partnership

see FIRM.

partnership

A legal relationship between two or more persons, each of whom may act as an agent for the partnership and legally bind it and the other partners.

Partnership

A form of business in which two or more persons join their money and skills in conducting the business. Partnerships must file a return but are not subject to tax. Each partner reports his or her share of the partnership's income, gains, losses, deductions, and credit on his or her individual return.
References in periodicals archive ?
Before embarking on any business partnership, consider these steps for creating a successful union:
IN BUSINESS: Round Oak School pupils who took part in the Business Enterprise Day, (from left) Richard Trow, Michelle Bastock, Sinetta Bastock and Michael Jephcot with Donna Jenkins from Education Business Partnership.
It is sometimes shocking how people -- even seasoned business people -- can enter into business partnerships without clearing up the ambiguity around matters like ownership percentages, roles and responsibilities of each partner, evaluating performance, hiring family members, compensation, dividend policy, information sharing, and the way decisions will be made.
Business partnerships, alliances, joint ventures and other collaborations are increasingly important to financial-services organizations intent on building competitive strength and sustaining profitable growth.
As envisioned by a business partnership, headed by Westlake Village businessman Dave Gulbranson, Sport X would include an event center of up to 200,000 square feet for basketball, volleyball and other activities.
The Cardiff Business Partnership, made up of some of the biggest private sector companies in Cardiff, such as Admiral, Legal & General, Boomerang Plus and Western Mail publisher, Media Wales, was launched last week.
The Business Partnership is part of a network of 28 offices throughout the UK, which allows for the marketing of regional businesses on both a local and national platform.
There are 130 Education Business Partnerships across the country and the award means Walsall's is one of the best.
Gail Wright, of the Warwickshire Education Business Partnership, said: "The students have already completed application forms and hopefully they will have a very positive experience under their belts in readiness for their next step in life.
Daniels addressed a group of local business leaders about economic development, the economy and other issues that are impacting the Long Island businesses community during the event hosted by the Long Island Regional Business Partnership at Farmingdale State University
The children were made aware of fire safety during the half-day trip organised through the Educational Business Partnership set up to give pupils a chance of learning about the workplace.
Contract notice: Regarding implementation of the finnpartnership business partnership program of professional services.

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