Ch.+8.2


 * Ch. 8.2 Outline and questions #1-4**


 * **Partnership**- a business organization owned by two or more persons who agree on a specific division of responsibilities and profits
 * Types of Partnerships**
 * partnerships fall into 3 categories: general partnerships, limited partnerships, and limited liability partnerships...Each divides responsibility and liability differently
 * General Partnership**
 * the most common type of partnership is general partnership
 * **General Partnership-** Partnership in which partners share equally in both responsibility and liability
 * many of the same kinds of businesses that operate as sole proprietorships could operate as general partnerships
 * Limited Partnership**
 * In a **Limited partnership-** partnership in which only one partner is required to be a general partner
 * The other partner only contributes money
 * they do not actively operate the business
 * limited partners can loose only the amount of their initial investment
 * Limited Liability Partnerships**
 * **Limited Liability Partnership**- partnership in which all partners are limited partners
 * This type of partnership works like a general partnership, except that all partners are limited from personal liability in certain situations, such as another partner's mistakes
 * not all types of businesses are allowed to register as limited liability partnerships
 * **articles of partnership**- a partnership agreement
 * **Uniform Partnership Act**- Act ordering common ownership interests, profit and loss sharing, and shared management responsibilities in a partnership
 * **Assets-** money and other valuables belonging to an individual or business

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 * 1) There must be 2 or more persons to start a business, there must be an agreement between persons desirous of forming a partnership, each partners must agree to share the profit/loss of the business.
 * 2) **General Partnership-**Partnership in which partners share equally in both responsibility and liability**, Limited partnership-**partnership in which only one partner is required to be a general partner**, Limited Liability Partnership**- partnership in which all partners are limited partners
 * 3) The capital to be contributed by each partner, the rate of interest to be allowed on partners capitals, the rate of interest to be charged on partners drawings, any salaries payable to partners, the ratio in which the remaining profit / loss is to be shared
 * 4) The Uniform Partnership Act is a uniform state law adopted by most states to establish rules for partnership.