Characteristics and objectives of General partnership:
Characteristics of General Partnership:
1. Shared management: In a general partnership, all partners have an equal say in the management and decision-making process of the business.
2. Unlimited liability: Each partner is personally liable for the obligations and debts of the partnership, along with the shared liability among partners.
3. Joint ownership and control: All partners have joint ownership and control over the partnership assets and operations.
4. Mutual agency: Each partner can legally bind the partnership and the other partners through their actions or business decisions.
5. Shared profits and losses: Profits and losses are shared among partners according to the agreed-upon partnership agreement.
Objectives of General Partnership:
1. To provide a platform for multiple individuals to pool their resources, skills, and expertise to start and operate a business together.
2. To distribute the responsibilities and risks of the business among partners, ensuring equitable participation and allocation of profits and losses.
3. To maximize business growth and profitability through the combined efforts and contributions of all partners.
4. To provide an opportunity for partners to utilize their individual strengths and expertise for the benefit of the partnership.
5. To establish a mutually beneficial business relationship and create opportunities for personal and professional development for all partners.