Chapter 13 – Partnership Characteristics, Formation and Accounting for Activities

TeacherA business can be organized in a number of ways.  For example, it might be organized as a sole proprietorship, or it might be organized as a corporation.  It could also be organized as a partnership.

A partnership is an association of two or more individuals for  the purpose of carrying on a trade or business as co-owners.  Common examples of partnerships include professional services such as accounting firms, law firms, real estate investment firms, and a variety of smaller manufacturing firms.

Specific characteristics define partnerships.  These characteristics form the basis for the formation of a partnership, and also the activities of a partnership.  To find out more, go here.