After reading this chapter, you will be able to answer the following questions: What is a partnership? What are the different ways in which a partnership can be formed? What are the rights of partners as they interact with each other? Are all members of a partnership liable for interactions with third parties? | Chapter 36 Partnerships: Nature, Formation, and Operation Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Chapter 36: Partnerships: Nature, Formation, and Operation Partnership (Uniform Partnership Act Definition): “Association of two or more persons to carry on as co-owners a business for profit” 36- According to the Uniform Partnership Act, a partnership is defined as an association of two or more persons to carry on as co-owners a business for profit. 36- Characteristics of Partnership Voluntary and consensual relationship Between two or more individuals, partnerships, corporations, or other forms of business organization Engaged in numerous business transactions over period of time Partners share profits and management of business A partnership is a voluntary and consensual relationship between two or more individuals, partnerships, corporations, or other forms of business organization. A partnership is typically engaged in numerous business transactions over a period of time, and partners share in the profits and management of the business. 36- Situations Where No Partnership: Employer shares profits with employee as payment for work Landlord accepts share of profits for payment of rent Party receives share of profits for payment of debt Party receives share of profits for payment of annuity to widow/representative of deceased partner Party receives share of profits for payment from sale of goodwill of business/other property Party receives share of profits for payment of interest on a loan The following business arrangements do not constitute a partnership: An employer shares profits with an employee as payment for work; a landlord accepts a share of profits for payment of rent; a party receives a share of profits for payment of a debt; a party receives a share of profits for payment of an annuity to a widow or representative of | Chapter 36 Partnerships: Nature, Formation, and Operation Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Chapter 36: Partnerships: Nature, Formation, and Operation Partnership (Uniform Partnership Act Definition): “Association of two or more persons to carry on as co-owners a business for profit” 36- According to the Uniform Partnership Act, a partnership is defined as an association of two or more persons to carry on as co-owners a business for profit. 36- Characteristics of Partnership Voluntary and consensual relationship Between two or more individuals, partnerships, corporations, or other forms of business organization Engaged in numerous business transactions over period of time Partners share profits and management of business A partnership is a voluntary and consensual relationship between two or more individuals, partnerships, corporations, or other .
