Question

define partnership . explain the types of partners?

Answer 1

a relationship between two people, organizations, etc.
Types of Partners in a BusinessPartnership. Partners are of different kinds in a business partnership. They are as working partner, sleepingpartner, nominal partner, partner by estoppel, limited partner, secretpartner, partner by holding out, sub-partner, partner in profit.

Answer 2

A partnership is a form of business where two or more people share ownership, as well as the responsibility for managing the company and the income or losses the business generates. That income is paid to partners, who then claim it on their personal tax returns the business is not taxed separately, as corporations are, on its profits or losses.

There are three types of partnerships:
1. General Partnership:

In a general partnership, each partner shares equally in the workload, liability, and profits generated and paid out to the partners. All partners are actively involved in the business’s operations.

2. Limited Partnership:

Limited partnerships allow outside investors to buy into a business but maintain limited liability and involvement, based on their contributions. This is a more complicated form of partnership, which also has more flexibility in terms of ownership and decision-making.

3. Joint Venture:

Short-term projects or alliances that bring together multiple partners for a project are typically structured as joint ventures. If the venture performs well, it can be continued as a general partnership. Otherwise, it can be shuttered.