Reference no: EM131060244
Background
According to sba.gov (2015), A partnership (Links to an external site.) is a single business where two or more people share ownership.
Each partner contributes to all aspects of the business, including money, property, labor or skill. In return, each partner shares in the profits and losses of the business.
Because partnerships entail more than one person in the decision-making process, it's important to discuss a wide variety of issues up front and develop a legal partnership agreement. This agreement should document how future business decisions will be made, including how the partners will divide profits, resolve disputes, change ownership (bring in new partners or buy out current partners) and how to dissolve the partnership. Although partnership agreements are not legally required, they are strongly recommended and it is considered extremely risky to operate without one.
Prompt
Explain how partnerships are formed. What are the duties imposed by the law onto these partners? Are there any circumstances where one partner should be liable for the activities of another partner?
What You Will Turn In:
A written APA formatted paper of at least 750 words with at least three references and citations.
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