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10 Cards in this Set
- Front
- Back
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Characteristics of a Partnership.
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Voluntary association
Partnerships agreement Limited Life Taxation Mutual Agency Unlimited Liability Co-ownership of Property |
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Voluntary Association
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It means that joining a partnership is completely the decision of the individual and its through their own will
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Partnership agreement
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It means that two or more legally competent people said okay to becoming partners
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Limited Life
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That the partnership has a lifespan
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Taxation
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Partners are taxed on their share of partnership income, not on their withdrawals.
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Mutual Agency
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That each partner has equal rights in making decisions or signing into contracts for as long as it is within the scope of the business; or unless otherwise noted.
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unlimited liability
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any liabilities created by the business and partnership is on behalf of all partners in the business
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general partnership
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A partnership with mutual agency and unlimited liability
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co-ownership of property
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any assets that partners put into the business is considered assets by all partners
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Disadvantage of a partnership.
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They have limited life, mutual agency, and unlimited liability.
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