Partnership Definitions
General Partnership
All the partners have control over the firm
General partner
Someone who has full personal liability for debts of the firm
Termination
When the winding-up process is completed and the partnership ceases to exist
Trading Partnership
Buys and sells goods and services commercially
A partner who may be known to the public but takes no active part in management
Winding-up period
Termination or ending of the partnership; all partnership business is concluded
Non-trading Partnership
Provides professional and noncommerical assistance, such as legal, medical, or accounting advice
Secret partner
Joint Venture
Occurs when two or more persons or firms combine their resources and skills to do a specific project
Special Partnership
Some or all members of a partnership undertake a unique endeavor in the same area of business as the general partnership
Dormant Partner
A partner who is neither known to the public as a partner nor active in management.
What does IRS Stand for?
How are they defined?
Classified according to their purpose and according to the extent of the liability of the partners
Nominal Partners
People who hold themselves out to be as partners, or let others do so, but are not truly partners. Ex: parents sometimes become nominal partners to assist children who have taken over the family business
Uniform Limited Partnership Act