partnership


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Related to partnership: limited partnership, Partnership agreement

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 classic literature ?
Papa was very much depressed then, and more bowed down by care than ever you or I have seen him; but he seemed relieved by this expedient of the partnership, though at the same time he seemed hurt by it and ashamed of it.
He stood up and said among the Argives, "We bid two champions put on their armour, take their keen blades, and make trial of one another in the presence of the multitude; whichever of them can first wound the flesh of the other, cut through his armour, and draw blood, to him will I give this goodly Thracian sword inlaid with silver, which I took from Asteropaeus, but the armour let both hold in partnership, and I will give each of them a hearty meal in my own tent.
And at Michaelmas, perhaps, a fourth may be added: some small hunting-box in the vicinity of everything so dear; for as to any partnership in Thornton Lacey, as Edmund Bertram once good-humouredly proposed, I hope I foresee two objections: two fair, excellent, irresistible objections to that plan.
Or, it may be that the latter has entered into a partnership with her.
To put an end to these sordid and ruinous contentions, several of the principal merchants of Montreal entered into a partnership in the winter of 1783, which was augmented by amalgamation with a rival company in 1787.
He encountered by chance in Holland a young American, with whom, for a time, he formed a sort of traveler's partnership.
He had displayed one of his buried talents in the matter of skating, and now that the skating was over seemed disposed to prolong the partnership.
Once upon a time, a mouse, a bird, and a sausage, entered into partnership and set up house together.
We struck up a partnership kind of casual, both being on the tramp together, and after a while we 'appened to be round about Reigate.
Snagsby has dealt in all sorts of blank forms of legal process; in skins and rolls of parchment; in paper--foolscap, brief, draft, brown, white, whitey- brown, and blotting; in stamps; in office-quills, pens, ink, India- rubber, pounce, pins, pencils, sealing-wax, and wafers; in red tape and green ferret; in pocket-books, almanacs, diaries, and law lists; in string boxes, rulers, inkstands--glass and leaden--pen-knives, scissors, bodkins, and other small office-cutlery; in short, in articles too numerous to mention, ever since he was out of his time and went into partnership with Peffer.
Catherine was disturbed and out of spirits; but Isabella seemed to find a pool of commerce, in the fate of which she shared, by private partnership with Morland, a very good equivalent for the quiet and country air of an inn at Clifton.
Purchases bought by bulk in partnership had to be equitably divided, outstanding debts canceled, accounts compared, and trunks, boxes and packages labeled.

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