BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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One owner and their family
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2 to 20 people
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20 or more people
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2 people only
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Detailed explanation-1: -What is a partnership? A partnership exists therefore where two or more people (or Companies) combine together in business. There is a statutory maximum of 20 partners but there are many permitted exceptions to this including solicitors, Accountants, Estate Agents etc.
Detailed explanation-2: -A partnership is the relationship between two or more people to do trade or business. Each person contributes money, property, labor or skill, and shares in the profits and losses of the business. Publication 541, Partnerships, has information on how to: Form a partnership.
Detailed explanation-3: -Key Takeaways A partnership is an arrangement between two or more people to oversee business operations and share its profits and liabilities.
Detailed explanation-4: -General Partnership (GP) If the partners are more than 20, it must be incorporated as a company. All partners are personally liable for the debts and liabilities of the business. The partners’ liability remains unlimited. The partners are liable for the debts or losses incurred by the other partners.