Partnership:

Partnership is a type of business organization usually formed by the coming together of two to twenty persons. The members of a partnership business are called partners. Usually they enter into legal agreement to run the business. However, in West Africa, we have persons forming informal partnership where there are no written down agreements.

(a) Features of Partnership

i. The membership of partnership ranges from two to twenty. Normally, twenty being the maximum number.

ii. It may be the amalgamation (union) of sole proprietors.

iii. All the partners collectively own the business.They set out rules to govern the business and to define each partner’s rights and obligations.

iv. A partner could be either a dormant or an active partner. A dormant partner only provides capital and share in profits and losses but does not participate in the running of the business, whilst an active partner provides capital and takes part in the day to day running of the business.

v. In the event of business failure, partners may not only lose their capital but also their private properties.