合伙企业与股份有限公司.docVIP

合伙企业与股份有限公司 A partnership is an unincorporated business that is jointly owned by two or more people.Partnerships, like single proprietorships, are widely used for small businesses and professional practices. In the fields of manufacturing, wholesaling, and retail trade, partnerships are also popu-lar, because they afford a means of combining the capital and abilities of two or more persons. As in the case of a single proprietorship, a partnership is not legally an entity separate from its owners;consequently, a partnership is personally responsible for the debts of the partnership is a business entity separate from the personal activities of the partners. A partnership is often referred to as a firm; the name of the firm often includes the word “company” as, for example “Adams, Myers,and Company.” SIGNFICANT FEATURES OF PARTNERSHIP. Before taking up the accounting problems peculiar to partnerships, it will be helpful to consider briefly some of the distinctive characteristics of the partnership form of organization. These characteristics (such as limited life and unlimited liability) all stem from the basic point that a partnership is not a separate legal entity in itself but merely a voluntary association of individuals. Ease of Formation. A partnership can be created without any legal formalities. When two or more persons agree to become partners, such agreement constitutes a contract and a partnership is automatically created. The contract should be in writing in order to lessen the chances for misun- derstanding and future disagreement. Limited Life. A partnership may be ended at any time by the death or withdraw of any mem- ber of the firm. Other factors which may bring an end to a partnership include the bankruptcy or incapacity of a partner, or the completion of the project for which the partnership was formed. The admission of a new partner or the retirement of an existing member means an end to the old part- nership, although the business may be co