NAME: ABDULRAHMAN BALA

REG NO: 2001441003

COURSE: HUMAN CAPITAL
DEPT: HNDI OTM
TITLE: ASSIGNMENT
QUESTION

Write all you know on partnership

INTRODUCTION

A partnership comprised of one or more people in charge of the business

who are personally responsible for the debts of the partnership (known as
general partners) and one or more people who provide capital and share in
the profits but who do not manage the business and are responsible only
for the amount of their contribution (known as limited partners).

WHAT IS A PARTNERSHIP?

A partnership is a formal arrangement by two or more parties to manage

and operate a business and share its profits.

There are several types of partnership arrangements. In particular, in a

partnership business, all partners share liabilities and profits equally, while
in others, partners may have limited liability. There also is the so-called
"silent partner," in which one party is not involved in the day-to-day
operations of the business.

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  A partnership is an arrangement between two or more people to
oversee business operations and share its profits and liabilities.
 In a general partnership company, all members share both profits and
liabilities.
 Professionals like doctors and lawyers often form a limited liability
partnership.
 There may be tax benefits to a partnership compared to a
corporation.

4 TYPES OF PARTNERSHIP IN BUSINESS

1. General Partnership

This partnership is the most common form of business cooperation.

General partnerships do not require you to have a business entity that is
officially registered in the state. You see, you and your business partners
can immediately form a partnership after signing the partnership
agreement. Meanwhile, the ownership and profit of the business will also
be shared among the parties involved. In a general partnership, each
partner has its own authority to be bound by a business agreement. They
also have different liabilities which means each has its own responsibilities
and obligations.
2. Limited Partnership
Limited Partnership (LP) is a type of business partnership that is formal and
has been authorized by the state. At least, limited partnership actors have
one general partner who is responsible for managing the business and has
one or more limited partners who support funding, but do not actively
manage the business. In other words, the limited partnership will invest

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their funds and then make a profit from it. However, they are not
responsible for any debts or liabilities.

3. Limited Liability Partnership

A limited liability partnership (LLP) works like a general partnership. So,

every party involved in the partnership will be actively involved in the
business. However, keep in mind that each other has different
responsibilities based on their respective roles. Meanwhile, each party
running a limited liability partnership can also be responsible for legal
liabilities and debts contained in the business. However, each party is not
responsible for mistakes made by the other party.

4. Limited Liability Limited Partnership

Limited Liability Limited Partnership (LLLP) is a type of partnership that can

be done in several states in America. Some examples of these states are
Arizona, Alabama, Utah, Ohio, New Mexico, Florida, and Georgia. The way
an LLLP works is similar to a Limited Partnership (LP) which has at least
one general partner to manage the business. However, LLLP limits the
general partner’s liability. So, each partner has their own liability protection.
LLLP can be formed from LP based on a decision that has been agreed
upon by each party involved.

CONCLUSION

Through partnerships, business actors can support each other to achieve

their goals and generate maximum profits. Of course, in running a
partnership, there are several things that need to be considered, for

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example, having the same type of work and fulfilling responsibilities as a
partner. That way, the business that you do not only get a satisfying profit,
but also can develop and expand relationships with business partners and
customers.

REFERENCE

Padgett, John F.; McLean, Paul D. (2006). "Organizational Invention and Elite
Transformation: The Birth of Partnership Systems in Renaissance Florence".
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Jean Favier, Gold & Spices: the rise of commerce in the middle ages, Holmes & Meier
Pub; 1st US edition, July 1998
Jairus Banaji (2007), "Islam, the Mediterranean and the rise of capitalism", Historical
Materialism 15 (1): 47–74, Brill Publishers.
Laiou, Angeliki E. (2008). The Economic History of Byzantium: From the Seventh
through the Fifteenth Century. Dumbarton Oaks. ISBN 978-0884023326.
Enkhbold, Enerelt (2019). "The role of the ortoq in the Mongol Empire in forming
business partnerships". Central Asian Survey. 38 (4): 531–547.

Beerbühl, Margrit Schulte (13 January 2012). "Networks of the Hanseatic League".
EGO European History Online. Retrieved 22 September 2017.