Partnership Theories and Characteristics

<p>Secret Partner (B)</p> Signup and view all the answers

<p>Registration with local municipality (B)</p> Signup and view all the answers

<p>50 years (C)</p> Signup and view all the answers

<p>Partnerships that have not completed registration requirements (A)</p> Signup and view all the answers

<p>Partners contribute money, property, and industry to a common fund (D)</p> Signup and view all the answers

<p>Liable up to their personal net assets (C)</p> Signup and view all the answers

<p>Limited Partner (B)</p> Signup and view all the answers

<p>It must be stipulated in the agreement (B)</p> Signup and view all the answers

<p>Managing Partner (D)</p> Signup and view all the answers

<p>A partner contributing specialized skills (A)</p> Signup and view all the answers

<p>Partnerships are easier and less expensive to organize. (C)</p> Signup and view all the answers

<p>Greater financial capability. (B)</p> Signup and view all the answers

<p>All partners are subject to unlimited liability. (A)</p> Signup and view all the answers

<p>Mutual agency can create personal obligations. (B)</p> Signup and view all the answers

<p>Relative freedom and flexibility of action. (A)</p> Signup and view all the answers

<p>Partnerships are easily dissolved, making them less stable. (D)</p> Signup and view all the answers

<p>Partners must contribute money, property, or industry. (D)</p> Signup and view all the answers

<p>Partners intend to divide both profits and losses. (B)</p> Signup and view all the answers

<p>Approval by the law (A)</p> Signup and view all the answers

<p>Unlimited for each partner (C)</p> Signup and view all the answers

<p>Partners can appoint managers in a partnership (D)</p> Signup and view all the answers

<p>It can be terminated immediately (A)</p> Signup and view all the answers

<p>Partnerships follow corporate tax rules (A)</p> Signup and view all the answers

<p>Partnerships can cease to exist immediately (C)</p> Signup and view all the answers

<p>All partners are agents for the partnership at all times (D)</p> Signup and view all the answers

<p>Corporations have personality upon SEC approval, partnerships do not (D)</p> Signup and view all the answers

A contract where two or more parties contribute money, assets, or skills to a common fund, aiming to share profits.

More capital, combined skills, freedom, and flexibility in decision-making compared to a sole proprietorship.

Easier and less expensive to form compared to a corporation, and more personal and flexible.

Easily dissolved, potential unlimited liability, and limited capital-raising capacity compared to a corporation.

Each partner has their own account that tracks their ownership portion in the partnership's assets and liabilities.

A partnership is a separate legal entity distinct from the individual partners, even if organization requirements aren't fully met.

Partners contribute money, assets, or labor (skills/knowledge) to the partnership.

Partners in a partnership agree to share the profits or losses from the business operation.

Partners contribute money, property, and industry to a common fund, becoming co-owners. Profits are distributed based on agreement.

Partnerships focused solely on dividing profits, not assets. Requires stipulation.

Partnerships with a specific objective, often stipulated, like professional services (e.g., CPAs, lawyers).

A legally recognized partnership that has followed all required procedures (SEC, government agencies).

Partnership not properly registered but legally considered a partnership; sometimes illegal.

Partner with unlimited liability; personal assets at risk.

Partner with limited liability, only liable up to investment.

A partnership involving professional services, like accountants or lawyers.

Partnerships are formed by agreement, while corporations require legal approval. Partners have unlimited liability, while shareholders in corporations have limited liability.

A legally binding agreement outlining the rights and responsibilities of partners in a business.

In a partnership, all partners act as agents for the partnership.

Partners are personally responsible for the partnership's debts beyond their investment.

Shareholders are only liable up to the amount of their investment in the corporation.

A partnership is a separate entity for legal purposes, but only after SEC approval

Partners can decide to end a partnership at any time by agreement.

Partnerships can have two or more partners; corporations can have two or more but can be one person.

A partnership with at least one general partner who is liable with their personal assets and one or more limited partners who are only liable up to their investment.

A partner appointed to handle the division of assets during the end of partnership.

A partnership that continues as long as all partners remain agreeable.

A partner who plays no active role in the business and is not publicly recognized.

A partnership formed for a specific time or event, dissolving afterwards.