Which of the following statements is true about partnerships?
A. A partnership must have only individuals as partners
B. A partnership must have at least two partners
C. A partnership must have a least one individual person as a partner
D. A partnership must have a written agreement
The Correct Answer is B. A partnership must have at least two partners.
It refers to the control over the business enterprises and being able to dictate its functioning and operations. There are the three ways in which business ownership may acquire and initiating a business, purchasing a company that is already existing and franchising.
The three forms of business ownership which is operated by the proprietor in the Sole proprietorship, partners in the partnership which share profit according to their share in the business and last one is Limited Liability Company (LLC), makes with the mixture of sole-proprietorship and a corporation to complete the entire task in the business.
Partnership is a form of business in which more than two people will have ownership and the responsibility of looking over the activities of the company.
A partnership is a business owned by two or more persons. Here, a person includes not only an individual. It may include corporations as well. There is no specific legal provision about having an individual person as partner.
A partnership can be formed through written and oral agreements. No statutory provisions are applicable for making a written agreement only.
A partnership is a business owned by two or more persons who have unlimited liability for its debts and obligations. In a general partnership each partner actively participates as an equal in managing the business and being liable for the acts of other partners. In a limited partnership one or more general partners conduct the business, while one or more limited partners contribute capital but do not participate in the management and are not held liable for debts of the general partners.