Accounting-Ch12-Partnerships

By ljsanluis7, Feb 2012

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Characteristics of a Partnership.	Voluntary association Partnerships agreement Limited Life Taxation Mutual Agency Unlimited Liability Co-ownership of Property
Voluntary Association	It means that joining a partnership is completely the decision of the individual and its through their own will
Partnership agreement	It means that two or more legally competent people said okay to becoming partners
Limited Life	That the partnership has a lifespan
Taxation	Partners are taxed on their share of partnership income, not on their withdrawals.
Mutual Agency	That each partner has equal rights in making decisions or signing into contracts for as long as it is within the scope of the business; or unless otherwise noted.
unlimited liability	any liabilities created by the business and partnership is on behalf of all partners in the business
general partnership	A partnership with mutual agency and unlimited liability
co-ownership of property	any assets that partners put into the business is considered assets by all partners
Disadvantage of a partnership.	They have limited life, mutual agency, and unlimited liability.

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