Explain features of partnership
The following are some of the most important aspects and traits of a partnership:
1. The formation of an agreement between at least two parties results in the establishment of a partnership.
2. Sharing of earnings: The partners in the firm should come to an agreement over how they will divide the company's profits.
3. Conducting lawful business: The enterprise that is intended to be run by a partnership must at all times be legal.
4. Participating Members: A minimum of two people are required in order to establish a partnership. Twenty is the maximum amount allowed. However, the maximum number of participants allowed in a banking firm is ten people.
5. Unlimited liability: Each and every partner is jointly and severally liable for any losses that may occur.
6. The connection between the principal and the agent: Every partner is an agent of the company. It is possible for him to represent the company. It is not just his own actions that he is liable for, but also the actions that he does on behalf of the other partners.
7. Collective management: the company and its partners are treated as if they were a single entity. When a contract is signed in the name of the company, each partner is individually and jointly liable for upholding the terms of the agreement.
8. The non-transferability of shares stipulates that a partner is unable to sell or give up his portion of the business to other parties without first receiving approval from the other partners.