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Partnership Form
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Partnership, a form of entrepreneurial organization. The law recognizes a partnership if the parties intend to carry on business in common with a view to profit, whether there is a written agreement or not. In Britain the law is set out in the Partnership Act, 1890. If no agreement is made to the contrary, profits must be shared equally, but it is usual to have an agreement dealing with profits, salaries, drawings, goodwill and any other important matters.<br /><br />The liability of partners is not limited; a partner is liable to an unlimited extent not only for his own share of the debts of the firm but also for the shares of his partner or partners in so far as they are unable to pay their debts. A partner is also liable for all acts of a co-partner within the scope of the business.<br /><br />The growth of the private limited liability company has reduced the number of partnerships, except in the professions such as medicine, law, accountancy, retailing, estate management, where the firm or partnership is still the recognized common form of business organization.
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