Partnership, Finance Basics

Assignment Help:

Partnership

Definition -Partnership may be defined as a relationship between persons carrying on a business in common with a view of profits. In partnership business, two or more persons jointly run a business. The liability of the individual partner is unlimited unless the partnership agreement provides for any limitations. A partnership consists of not more than twenty persons except in certain cases e.g. practicing lawyers, professional accountants, and members of the stock exchange where this figure can be exceeded. Normally, the number of partners in a partnership business varies from two to five partners. In a case of banking business the number of banking partners is limited to ten.

In Kenya all partnerships are formed in accordance with Partnership Act of 1934 (Chap 29). The name of the partnership must be registered first under the Registration of Business Act. The formation of partnership is not very complicated.

 

 


Related Discussions:- Partnership

Importance of interest rates, Importance of Interest Rates These are o...

Importance of Interest Rates These are of a specifically relevance to a finance manager since: i) They measure the cost of borrowing. ii) Interest rates in a country influen

Cost of retaining finance, Cost of Retaining Finance This will contain...

Cost of Retaining Finance This will contains dividends for share capital and interest for debt finance or can say tax deducted or like effective cost of debt.  Though, when co

Long term lenders - measuring business performance, Long Term Lenders - Mea...

Long Term Lenders - Measuring Business Performance Long term lenders These involve finances with loans, mortgages and debenture holders.  These have both short and long

Work, A bond that has $1000 face value and a contract interest rate of 11.4...

A bond that has $1000 face value and a contract interest rate of 11.4%. The bonds have a current value of $1124 and will mature in 10 years. The firms marginal tax rate is 34%. The

Debtors collection period - formula, Debtors Collection Period - Formula ...

Debtors Collection Period - Formula Fomula is given below: Debtors collection period = 365/ Debtors turnover Or (365 x Average debtors)/ Annual credit sales This

Ibo-4, What is the need for documents in international business? Substantia...

What is the need for documents in international business? Substantiate your answer with suitable examples.

What is holding period return, What is Holding Period Return/Return ...

What is Holding Period Return/Return Holding period yield (HPY) measures the total return from an investment during a given time period in which asset is held by the investo

Application of discriminant analysis, Application of Discriminant Analysis ...

Application of Discriminant Analysis Application of Discriminant Analysis to the Selection of Applicants, Discriminative analysis is a statistical model such can be used to ac

Short term fianacing, discuss the three approaches to the short -term finan...

discuss the three approaches to the short -term financing problem and provide relevant examples of each.

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd