Which statement best describe charecteristics of a partnership

A partnership is a type of business structure that involves two or more individuals managing and operating a business in accordance with the terms and objectives set out in a Partnership Deed. Here are some characteristics of a partnership:

1. Number of Owners:

• A partnership involves two or more owners, known as partners, who share the responsibilities and benefits of the business.

2. Liability:

• In a general partnership, partners typically have unlimited personal liability for the debts and obligations of the business. This means that personal assets of the partners may be used to satisfy business debts.

3. Management:

• Partnerships allow for shared management responsibilities among the partners. Each partner has a say in the decision-making process, and the workload is distributed based on the terms agreed upon in the partnership agreement.

4. Profit Sharing:

• Profits generated by the business are typically shared among the partners based on the terms outlined in the partnership agreement. This includes the allocation of profits and losses.

5. Capital Contributions:

• Partners contribute capital, assets, or skills to the business. The partnership agreement specifies each partner's contribution and the distribution of ownership.

6. Duration:

• Partnerships can be formed for a specific project or with the intention of operating the business for an indefinite period. The duration is often outlined in the partnership agreement.

7. Legal Formalities:

• While partnerships are relatively easy to establish compared to other business structures, there may still be legal formalities to be addressed, such as the creation of a partnership agreement.

8. Taxation:

• Income from the partnership is generally passed through to the individual partners and taxed on their personal income tax returns. Partnerships themselves do not pay income tax.

9. Transfer of Ownership:

• The transfer of ownership or the admission of new partners may require the consent of existing partners as specified in the partnership agreement.

10. Termination:

• A partnership may be terminated based on conditions outlined in the partnership agreement, the withdrawal of a partner, or other specified events.

It's important to note that there are different types of partnerships, including general partnerships, limited partnerships, and limited liability partnerships, each with its own variations in terms of liability, management, and other characteristics.