A partnership which is a legal person is a type of an entity which is owned by at least two people (partners) who share the profits and risks of running a business. This company form is widely used in a number of countries (USA, UK, India, Hong Kong, Canada, Australia, as well as less often in China, Germany, Japan and the Netherlands).
Partnership in practice: Just like in the case of a sole proprietorship , the partners are liable with their entire property, unlike in the case of a corporation. There exist certain types of partnership which are limited in liability, however, eg LLPs. The conditions for the establishment of such partnership differ from state to state and are governed by the country´s jurisdiction, ie the pertaining legislature of the given state.
Related terms and methods:
- LLP (Limited Liability Partnership)
- LLC (Limited Liability Company)
- Sole Proprietorship, Sole Trader
- Juridical person
- Company Owner
- Limited Liability
Related areas of management:
- Organisational management