MANAGEMENT

Detailed explanation-1: -In a general partnership, all parties share legal and financial liability equally. The individuals are personally responsible for the debts the partnership takes on. Profits are also shared equally. The specifics of profit sharing will almost certainly be laid out in writing in a partnership agreement.

Detailed explanation-2: -This means that in a partnership there is more than one owner, and the profit is shared between the owners. In a partnership, it is the residual profit which is divided between the partners in the profit and loss sharing ratio.

Detailed explanation-3: -there is a risk of disagreements and friction among partners and management. each partner is an agent of the partnership and is liable for actions by other partners. if partners join or leave, you will probably have to value all the partnership assets and this can be costly.

Detailed explanation-4: -In accordance with the partnership deed, the profit and losses are distributed among the partners. Without any agreement between the partners, while setting up a partnership, all the profit is distributed equally to every partner, irrespective of their contribution or efforts put into the business.