The reasons on which an investor choose to become a partner in a limited partnership instead of purchasing an open corporation’s stock. Introduction : A partnership is a type of business where at least two individuals share proprietorship and the duty regarding dealing with the organization and the salary or losses that are produced in the business.

Question

You have been invited to become a member of a partnership. What are five of the considerations you need to assess in making a decision whether to join the partnership and whether to become a general or limited partner?

Answer 1

Question

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 4, Problem 2DQ

Summary Introduction

To determine: The reasons on which an investor choose to become a partner in a limited partnership instead of purchasing an open corporation’s stock.

Introduction: A partnership is a type of business where at least two individuals share proprietorship and the duty regarding dealing with the organization and the salary or losses that are produced in the business.

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Students have asked these similar questions

You have been invited to become a member of a partnership. What are five of the considerations you need to assess in making a decision whether to join the partnership and whether to become a general or limited partner?

What does a limited partnership need to do if it wants to continue operations after a general partner withdraws?

Is a limited partnership more likely or less likely to have a partnership agreement than a general partnership?

Answer 2

Question

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 4, Problem 2DQ

Summary Introduction

To determine: The reasons on which an investor choose to become a partner in a limited partnership instead of purchasing an open corporation’s stock.

Introduction: A partnership is a type of business where at least two individuals share proprietorship and the duty regarding dealing with the organization and the salary or losses that are produced in the business.

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Answer 3

Question

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 4, Problem 2DQ

Summary Introduction

To determine: The reasons on which an investor choose to become a partner in a limited partnership instead of purchasing an open corporation’s stock.

Introduction: A partnership is a type of business where at least two individuals share proprietorship and the duty regarding dealing with the organization and the salary or losses that are produced in the business.

Expert Solution & Answer

Trending nowThis is a popular solution!

See solution

Check out sample textbook solution

Answer 4

Question

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 4, Problem 2DQ

Summary Introduction