Essay About Active Part And 3.Kinds Of Partners

Characteristic of Partnership
TOPIC 2: PARTNERSHIP
1.INTODUCTION OF PARTNERSHIP
Def: Two or more persons join together to carry on business for the purposes of making profits
The needs for partnership
More capital
Variety of ability and experiences
Management responsibility is shared
Often members are from the same family
2.NATURE / CHARACTERISTICS OF PARTNERSHIP
Profit making intention
Obey Partnership Act 1980 or Limited Partnership Act 1907
Members (min: 2, max:20)
Exceptions: bank (max:10) and other professionals partnerships
(eg: accountants& doctors: no maximum limits)
Each partners is responsible for the liabilities of the partnership so long as he still remains as a member of partnership
Partnership is dissolved automatically when one partner dies.
3.KINDS OF PARTNERS
1. ACTIVE (OR ORDINARY) PARTNER
This partner not only contributed capital into the business, but also takes an active part in the conduct of the business.
2. SLEEPING (OR DORMANT) PARTNER
This partner has capital in the firm, but takes no actual part in the management