The articles of partnership is a voluntarily prepared agreement detailing the terms and functioning of a partnership between business partners. It acts as a blueprint for the internal operations and distributions of profits, losses, and duties within the firm.
A Deed of Partnership is a formal agreement drawn up in the form of a deed which outlines the respective capital contributions, profit-sharing percentages, and other significant details among partners in a partnership business.
Distributive share refers to the allocation of income, gain, loss, deduction, or credit to a partner in a partnership, typically determined by the partnership agreement.
An association of two or more people (partners) formed for the purpose of carrying on a business. Partnerships vary in legal structure and liability among partners and are specifically governed by laws and agreements.
A Partnership Agreement, also known as Articles of Partnership, outlines the partnership terms, including profit sharing, salaries, interest on capital, and introduction or retirement of partners, governed by the Partnership Act 1890.
Partnership life and health insurance provide critical protection to maintain the value of a business in case of the death or disability of a partner. This insurance facilitates the transfer of a deceased or disabled partner's interest to the surviving partners based on a predetermined formula.
The ratio in which the profits or losses of a business are shared among its partners. For a partnership, the profit-sharing ratios will be defined in the partnership agreement, usually reflecting the amount, given as a percentage of the total profits, attributable to each partner.
