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  • Characteristics of Partnership

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    NdodanaM
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    A partnership has several key characteristics: each partner must contribute to the partnership; the partnership does not have a separate legal identity from the partners; individual partners can bind the partnership; if the partnership is liquidated, the partners' personal estates may be used to pay debts unless they agree otherwise; profits and assets are distributed to partners based on their share when the partnership dissolves; the partnership ends if a partner dies, leaves, or becomes insolvent; when dissolved, assets are liquidated to pay creditors and partners make up any shortfall; the partnership is not a separate legal entity for tax purposes and is not taxed like a company; and partnerships have no statutory audit requirements.

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    Partnership

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    A partnership has several key characteristics: each partner must contribute to the partnership; the partnership does not have a separate legal identity from the partners; individual partners can bind the partnership; if the partnership is liquidated, the partners' personal estates may be used to pay debts unless they agree otherwise; profits and assets are distributed to partners based on their share when the partnership dissolves; the partnership ends if a partner dies, leaves, or becomes insolvent; when dissolved, assets are liquidated to pay creditors and partners make up any shortfall; the partnership is not a separate legal entity for tax purposes and is not taxed like a company; and partnerships have no statutory audit requirements.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    58 views1 page

    Characteristics of Partnership

    Uploaded by

    NdodanaM
    A partnership has several key characteristics: each partner must contribute to the partnership; the partnership does not have a separate legal identity from the partners; individual partners can bind the partnership; if the partnership is liquidated, the partners' personal estates may be used to pay debts unless they agree otherwise; profits and assets are distributed to partners based on their share when the partnership dissolves; the partnership ends if a partner dies, leaves, or becomes insolvent; when dissolved, assets are liquidated to pay creditors and partners make up any shortfall; the partnership is not a separate legal entity for tax purposes and is not taxed like a company; and partnerships have no statutory audit requirements.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    CHARACTERISTICS OF PARTNERSHIP

    1. Each partner must make a contribution to the partnership


    2. It does not have a juristic personality separate from the partners.
    3. Each partner can bind the Partnership
    4. If the Partnership's estate is sequestrated; the estates of the partners can follow
    unless the partners undertake to pay the debts of the Partnership
    5. The profits and net assets are usually distributed amongst the partners on
    dissolution of the Partnership in proportion of their respective interests
    6. The life of the Partnership is not separate from the lives of the partners (so if
    one partner dies, leaves or is declared personally insolvent the Partnership
    becomes null and void)
    7. On dissolution, the assets are liquidated, creditors are paid and partners must
    stand in for any shortfall.
    8. The Partnership is not a "person" for tax purposes and is not taxed as a
    company would be.
    9. There are no statuary audit requirements.

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