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
Example of Miller-Orr Model XYZ's management has put the minimum cash balance to be equivalent to Sh.10, 000. The standard deviation of daily cash flow is of Sh.2, 500 and the

Internal Rate of Return, I am looking for assignment help on the topic Internal Rate of Return. It would be great if anyone help me.

Collection Policy The firm's collection policy may affect also our study.  The higher the cost of collecting accounts obtainable the lower the bad debt losses.  Therefore the

evaluate the importance of leverage in financial management of a small scale company

Church Inc. is presently enjoying relatively high growth because of a surge in the demand for its new product. Management expects earnings and dividends to grow at a rate of 25% f

Control of Pattern Formation Limbs such as all other organs have a pattern. What factor (or factors), environmental affects etc. are responsible for specific positioning of i

Solution to the Agency Conflict The government can acquire the following actions to protect itself and its interests. 1. Acquire monitoring costs E.g. the gover

Growth rate : The average of PC manufacturing industry growth rate was 22.24% for 2004, 20% for 2005, and 17.29% for 2006. It showed that the industry's growth rate has been declin

1. A stock pays no dividend and is expected to be sold for $50 after 4 years. If the investor's RRR is 12%, at what price is he/she willing to buy it? 2. ABC company has its ROE

Access to Capital Markets and Ownership Structure  Ownership Structure A dividend policy may be driven with Time Ownership Structure as like in small firms whereas manage