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What is 'Articles of Partnership'. Articles of partnership is a contract that forms an agreement among business partners to pool labor and capital, and share in profit, loss and liability. Such a document acts as a rule book for limited partnerships by outlining all the conditions under which parties enter into a partnership.What are some of the advantages of a partnership?
The advantages of a partnership include: The relatively small expense to establish (with the possible exception of ILPs); Partnerships allow separate people (including two companies) to pool together experience, knowledge and assets to run a mutual business together;What are the kinds of partners in the partnership?
Types of Partners in a Business Partnership Working Partner. A Working Partner is one who contributes capital to the business and takes active part in its management. Sleeping Partner. A Sleeping Partner is one who contributes only capital to the business, but does not take part in its management. Nominal Partner. ... Partner by Estoppel. ... Limited Partner. ... Secret Partner. ... Partner by Holding Out. ... More items...What are the features of a partnership?
Features of a partnership business include two or more members in the partnership, no legal separation between the members and the business, profit sharing between all members, mutual agency, and unlimited liability.