Advanced ch2
Advanced ch2
Advanced ch2
partnerships
Partnerships: Organization and Operation
2
Partnerships
● The Uniform Partnership Act defines a
partnership as: "an association of two
or more persons to carry on, as
co-owners, a business for profit".
● Partnerships generally are associated
with the practice of law, medicine,
public accounting and other
professions, and also with small
business enterprises.
Partnerships: Organization and Operation
3
Partnerships (contd.)
● General partnership: in which all
partners have unlimited personal liability
for debts of the partnership.
● Limited liability partnerships (LLPs):
individual partners of LLPs are
personally responsible for their own
actions and for the actions of
employees under their supervision.
follows:
Lane, Capital ($60,000 X 1/2) 30,000
▪
Land 80,000
Zell, Capital 80,000
To record admission of Zell to partnership.