PARTNERSHIPS


As a result of detriment of a sole trader , for example, restricted capital, at least two sole broker might contribute cash of abilities to maintain a business together to create gain.

For example, partnership are found in such professions as  fitting, law,accountancy, road construction, mechanics, building, estate  development and many others.

The partners are themselves responsible for the success or failure of the business. So it is advisable to enter  into partnership with people who you know are honest,reliable and hardworking.

 Partnership is a form of business ownership formed by two,but not more than twenty people for the purpose of making profit.

It is the coming together of people who pool their resources together to run a business for profit.

Important of partnership include the following

1. There is more privacy in partnership: A partnership is not forced by law to publish its accounts to the general public so it has more privacy.

2. Specialization: Partner with specialized knowledge or skills may work in areas where they are good at. This leads to specialization .

3. Sharing of risks: Risks in all partnership especial in the ordinary partnership are shared among the partners.

4. Pooling of ideas: When two or more people come together to form a business, the abilities and skills of the partners are pooled together for the benefit of the business.

5. Partnership has large size of capital: Since
partnership business is formed by two or more people, the size of the capital is likely to be bigger than that of sole proprietorship.

How a partnerships business is set up

Whenever you start a business, you need to decide if you will make major decisions without help from anyone else or have a co-proprietor. In the event that you're not excessively enthusiastic about maintaining a business solo, you might think about beginning an partnership. Figure out how to shape an partnership to kick things off with your undertaking.


• There should not be fewer than two and not more than twenty people involved.

• There must be a profit motive.

• The business must open a bank account.

• The business must be registered and regulated under the incorporated private partnership.







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