Partnership

Commerce SSS1 Third Term

WEEK 8

Partnership

Performance Objectives

The student should be able to:

     1. Define partnership.

     2. Describe the types of partnership.

     3. Give examples of partnership.

     4. Identify the sources of capital of the partnership.

Content

Definition of Partnership

A partnership may be defined as a type of business organisation in which two to twenty persons agree legally to set up and manage a business outfit with the sole aim of making a profit.

The partnership is usually formed by an association of two to twenty persons, who by an agreement (usually legal) decide to pool their resources (capital) or skill or both together and establish a business enterprise. The people involved in…