Partnership Paper

Topics: Partnership, Law, Corporation Pages: 2 (386 words) Published: March 23, 2013
Discuss partnership; provide example of business and why it is preferred (Chapter 34) When you see the word partnership the first thing one may realize that is more than one person. It means you are not in business alone. A general partnership is a voluntary association of two or more person for carrying on a business as co-owners for profit (Cheeseman, 2010). When in a partnership its name can be one of the owners or more as well as a fictitious business name. In 1914, the National Conference of Commissioners on Uniform State Laws promulgated the Uniform Partnership Act which was a group of lawyers, judges, and legal scholars. The UPA codifies partnership law. Its goal was to establish consistent partnership law that was uniform throughout the United States (Cheeseman, 2010). When a partnership is formed there other criteria that must implemented for this to be a partnership through the UPA. The first is there is an association of two or more persons; secondly, carrying on a business; thirdly, as co-owners; and lastly, for profit (Cheeseman, 2010). A partnership is the relationship existing between two or more persons who join to carry on a trade or business. Each person contributes money, property, labor or skill, and expects to share in the profits and losses of the business (IRS, 2012). When person are in a partnership they in a fiduciary relationship, which means they owe each other a duty of loyalty, duty of care, duty to inform, and duty of obedience. All these duties mean what they say, loyalty mean each partner being loyal an honest with the other; care is using reasonable care and skill in transacting partnership business; inform means keeping each other abreast of what any changes or problems may be in the business; and obedience is to be obedient to the partnership agreement. An example of a business partnership is Proctor and Gamble; although, this is a corporation it also a partnership, among companies. Proctor and Gamble produce many...
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