BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Real, in that the partners must deliver their contributions in order for the partnership contract to be perfected
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Principal, because it can stand by itself
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Preparatory, because it is a means by which other contracts will be entered into
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Onerous, because the parties contribute money, property or industry to the common fund
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Detailed explanation-1: -Explanation: Limited liability is not a characteristic of a partnership firm as the partners involved have unlimited liability.
Detailed explanation-2: -Following are the few features of a partnership: Agreement between Partners: It is an association of two or more individuals, and a partnership arises from an agreement or a contract. The agreement (accord) becomes the basis of the association between the partners. Such an agreement is in the written form.
Detailed explanation-3: -In conclusion, every partnership is unique, but all partnerships should include the above qualities to ensure mutual success. Remember both parties should be communicative, accessible, flexible, provide mutual, and have measurable results. These qualities are crucial in optimizing your partnership agreements.
Detailed explanation-4: -It is not mandatory for any partnership to get registered since small business find it costly to register themselves. And separate legal entity is not possible with a partnerrship because the business and the owner are same in this case.