Partnership Theories and Characteristics

<p>To ensure the partnership is recognized legally. (B)</p> Signup and view all the answers

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

<p>To contribute to a common fund and divide profits (A)</p> Signup and view all the answers

<p>Separate legal personality (A)</p> Signup and view all the answers

<p>Easier and less expensive to organize (D)</p> Signup and view all the answers

<p>Potential for instability and easy dissolution (C)</p> Signup and view all the answers

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

<p>Based on mutual agency (C)</p> Signup and view all the answers

<p>They have lower potential for profit. (C)</p> Signup and view all the answers

<p>The partner's contribution and agreed terms (B)</p> Signup and view all the answers

<p>A partnership that has fulfilled all legal requirements. (C)</p> Signup and view all the answers

<p>General Partner (A)</p> Signup and view all the answers

<p>Only profits generated by the partnership. (B)</p> Signup and view all the answers

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

<p>Particular Partnership (A)</p> Signup and view all the answers

<p>They are liable only up to their investment amount. (A)</p> Signup and view all the answers

<p>De Facto Partnership (D)</p> Signup and view all the answers

<p>A partner who invests money or property. (A)</p> Signup and view all the answers

<p>Partnerships can be formed by simple agreement. (B)</p> Signup and view all the answers

<p>They are co-owned by the partners. (A)</p> Signup and view all the answers

<p>Liability is unrestricted and includes personal assets. (D)</p> Signup and view all the answers

<p>Partnerships acquire legal personality upon SEC approval. (A)</p> Signup and view all the answers

<p>Partners in a partnership can both manage or appoint managers. (A)</p> Signup and view all the answers

<p>Partnerships may terminate immediately by partners' decision. (D)</p> Signup and view all the answers

<p>Partnerships are subject to a corporate tax, except certain professional partnerships. (D)</p> Signup and view all the answers

<p>Partnerships have no right of succession, while corporations do. (D)</p> Signup and view all the answers

A contract where two or more people contribute money, property, or skills to a shared fund, aiming to divide profits.

Individual accounts reflecting each partner's share in the partnership's assets and liabilities.

Increased financial capacity, combined skills, more freedom compared to a sole proprietorship.

Potential instability (easy dissolution), mutual agency (unlimited liability), and capital limitations.

A separate legal entity beyond individual partners, even with incomplete paperwork.

Partners agree to contribute money, property, or skills to the partnership.

Partnership's purpose is to share profits and losses among the partners.

Partnerships are easier and less expensive to form, more personal, and informal, compared to a Corporation.

Partnerships are formed by agreement, while corporations need legal approval. This affects various aspects like liability, management, and lifespan.

Partnerships are formed by an agreement among two or more people.

Partners in a partnership have unlimited liability, meaning their personal assets can be used to satisfy business debts.

In a corporation, shareholders are only liable up to the amount of their investment.

Partners in a partnership can manage the business directly or appoint others, unlike corporations which have a board of directors.

A partnership acquires juridical personality if approved by the SEC. Corporations, however, obtain it on certificate issuance.

Partnerships can be dissolved at any time, based on the agreement of partners. Corporations have a longer lifespan.

Most partnerships are subject to corporate tax, except for professional partnerships. Partnerships follow the corporation tax policies.

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

Partnerships focused solely on sharing profits, without co-ownership of assets. Must be explicitly agreed upon.

Specific goals, like professional partnerships (CPAs, lawyers), must be detailed in the agreement.

Partner responsible for unlimited liability, liable up to personal net assets.

Liability is limited to the amount contributed. Their responsibility is restricted.

Legally established partnership fulfilling SEC and government agency requirements.

Unregistered or illegal partnership. Still considered a partnership by law, but may lack legal protections.

Partnerships formed for the practice of professions like law or medicine. Often involve specialized skills and knowledge.

A partnership where some partners have limited liability, while at least one has unlimited liability.

A partner who doesn't participate actively in the business but is still considered a partner.

A partnership established for a specific duration or designated project.

A partnership that continues as long as all partners agree.

A partner appointed to handle the process of dissolving the partnership.