INTRODUCTION TO ENTREPRENEURSHIP
TYPES OF ENTREPRENEURSHIP
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the business continues even if one partner dies
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partners must pay specific business taxes on stock they issue
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partners usually draw up legal papers called articles of partnership.
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partners are only liable for the business’ debt up to the amount of their investment
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Detailed explanation-1: -Articles of partnership is a contract that forms an agreement among business partners to pool labor and capital and share in profit, loss, and liability. Such a document acts as a rule book for limited partnerships by outlining all the conditions under which parties enter into a partnership.
Detailed explanation-2: -General partners are two or more persons engaged in a business for the purpose of joint profit, thereby creating a general partnership. General partners assume unlimited joint and several personal liability; as such, a general partner may be personally liable for the actions of other general partners.
Detailed explanation-3: -ARTICLE 1767. By the contract of partnership two or more persons bind themselves to contribute money, property, or industry to a common fund, with the intention of dividing the profits among themselves.