Types of partners, Finance Basics

Types of Partners

1. General Partners -Unlimited active and liability in participation in partnership activities.

2. Limited partners - Limited liability in the management of partnerships does not participate.

3. Sleeping partners - has no active role, yet, such a partner will have donated to the capital of the partnership business and will so share in the profits while at a lower proportion in mainly cases.

A partnership deed constitutes a legal contract with the partners. The articles of partnerships must enclose eleven clauses.

a) Capital contribution

b) Profit sharing ratio

c) Nature of business

d) Powers of each partner.

e) The provision for proper accounts and their audit.

f) Rates of interest on both capital and drawings

g) Grounds of dissolution.

h) Expulsion procedures.

i) Determination of amount payable to outgoing partners.

j) Determination of Goodwill

k) The arbitration clause.

Posted Date: 1/29/2013 2:14:16 AM | Location : United States







Related Discussions:- Types of partners, Assignment Help, Ask Question on Types of partners, Get Answer, Expert's Help, Types of partners Discussions

Write discussion on Types of partners
Your posts are moderated
Related Questions
(a) RBC has 100 loans outstanding, each for $1 million, which it expects to be repaid today.  Each loan has a 5% probability of default, in which case the bank is not repaid anythi

What do you mean listing of securities? Explain. Listing of Securities: Listing means admission of the securities to dealings on a recognized stock exchange. Securities of an

Relationships and interactions among money, bond, stock and mortgage markets

Example of Capital Structure of a Company Example Company XYZ restricted has the given capital structure as:   10,000 Sh.10 ordinary shares 10,000

1-Suppose you deposit $ 5 000 in the bank. How much can you raise after 10 years when discount rate is 5% for the first four years and then rises to 7% annually? 2 -A used car co

Restrictive Bond or Debt Covenant In this case the debenture holders will impose strict conditions and terms on the borrower. These restrictions may comprise: a) No disposal

Review the budget below and answer the questions following the budget. FINANCIAL ACCOUNTING—STATEMENT OF REVENUE AND EXPENSES Statement of Revenue and Expenses for Group Practice f

discuss the flow of fund in an open economy

Agency Relationship between Government and the Shareholders Shareholders and via extension, the company they own operate within the environment requiring the charter or licens

risk structure of interest rates 1. Default risk 2. Liquidity 3. Income tax consideration 4. Expectations theory