2 Ways of Creating Partnerships:

Oral Agreement

Written Agreement

1.Management

Written Agreement should cover at least the following points:

2. Property Ownership and Contribution3. Share

of Profits and Losses

4. Records

5. Taxation

6.Dissolution

7. Termination

a. Agreement

b. At Will

c. Operation of Law

1. It could be as easily established as the sloe proprietorship.

2. It has definite legal status.

3. There are more persons to manage the business and to solve its problems.

4. There is larger amount of capital.

5. Retention of valuable employees ensured.

6. The combined abilities, skills, and resources of partners are great source of strength.

1. Unlimited liability of the partners.

2. Managerial difficulties.

3. Inevitable disagreement among partners may endanger the business firm

4. Limitation in size.

5. Frozen Investment

6. Lack of Continuity 7. Easy dissolution.

1. There is a single direction of management, hence there is unity and immediate action taken up.

2. The limited liability of limited partners, shall serve as good as enticement of investors resulting in large amount of capital to expand business operations.

1. The unlimited powers entrusted to general partners may be abused. The limited partners cannot interfere in the administration of the business firm even if there is mismanagement.

2. There is a great possibility of connivance among the general partners to commit fraud against the creditors and limited partners.

Jowen Camille BergantinPrepared by: