Can You Define Partnership And Its Essential Elements?


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ali imran answered
There are many meanings of partnership. One and most commonly, partnership means that dealing of two or more persons in a particular business or some work. In the partnership, the persons have profit shares divided among themselves. All the investment made is also by the all partners. The terms and conditions of the business are defined by mutual understanding of all the partners. There is another type of partnership in which one or group of partners invest all the money and the skilled person takes care of the production and selling of the product or promotion of the business.

The essential element in this kind of partnership is the understanding between the partners. Also the skills of the partners and the business you are investing in play key role in the business partnership. One thing I would like to suggest that in partnership, all the partners should exactly know that what matters are going on the business and what is the condition of the business. Also the terms and conditions for the business should have been written clearly and a legal copy of those terms should be provided to each partner individually.

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