Running head: PARTNERSHIPS PERKINS 1
Partnerships
Amber Perkins
BUS215
9/8/16
PARTNERSHIPS 2
Partnerships
A partnership is formed when two or more people agree to share in the profits and losses
for a particular business. This is usually done formally with a written contract, however, it can
also be a verbal agreement between two parties. The parties involved usually have equal footing
in the decision-making process. If the partners so choose, there can be clauses in the contract
which specify how each partner contributes to the business. “As in a sole proprietorship, there
is no state involvement in creating a general partnership because there is no separation from the
business and the partners—they are legally the same.”[ CITATION NA164 \l 1033 ]
There are specific duties that are imposed on each partner within a partnership. “Each
partner must act in good faith toward the other partners and must not take any advantage over the
other partners by misrepresentation or concealment.”[ CITATION Par16 \l 1033 ] All partners
