Business Partnership.

This is the form of business whereby two o more individuals join together under the agreement and operate the business for profit making. The partners are not separate from the business. 

The agreement should state the duties of each partner, who makes the final decision , and how profit and losses will be apportioned if any. The agreement of this from of business is advised to be in from of writing for ease referencing if any conflict arises, some business partners do it under an oral agreement.




Unless stated otherwise, each individual is responsible for all of the partnership's debt. Likewise, each partner may incur debt on behalf of the business unless there is any provision that states otherwise .Each partners shares in the losses and profits of the business and there is no perpetuity. This from of business grantees that if a partner leaves or dies , the business ends.


Merits of partnership

It is relatively easy to create.
It has no corporate tax.

Demerits of partnership

It has no tax breaks for business benefits.
It is liable to debts incurred by each partner in business.
It has no perpetuity of business.