Partnership Form of Organization The Uniform Partnership Act provides the basic rules for the formation and operation of partnerships in most states in the United States. This act defines a partnership as an association of two or more persons to carry on as co-owners of a business for profit. Partnerships are common in retail establishments and in small manufacturing companies. Also, accountants, lawyers, and doctors find it desirable to form partnerships with other professionals in their field. Professional partnerships vary in size from a medical partnership of 3 to 5 doctors, to 150 to 200 partners in a large law firm, to more than 2,000 partners in an international accounting firm. CHARACTERISTICS OF PARTNERSHIPS Partnerships are fairly easy to form. They can be formed simply by a verbal agreement or, more formally, by putting in writing the rights and obligations of the partners. Partners who have not put their agreement in writing sometimes have found that the characteristics of partnerships can lead to later difficulties. The principal characteristics of the partnership form of business organization
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This note was uploaded on 11/08/2011 for the course ACCOUNTING ac 201 taught by Professor - during the Spring '11 term at Montgomery.