Partnership Organization and Operation

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In this chapter we will be discussing partnership organizations and their operation. A partnership is a business organization that is formed by two or more individuals who agree to operate a business together. Partnerships are common in small businesses, and they offer certain advantages and disadvantages compared to other forms of organization such as sole proprietorship and corporation.

In this unit, we will cover the following topics:

  1. Definition and Characteristics of a Partnership
  2. Advantages and Disadvantages of a Partnership
  3. The Partnership Agreement
  4. Partnership Formation
  5. Division of Net Income or Net Loss
  6. Financial Statements for a Partnership
  7. Partnership Dissolution
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