Characteristics of partnership business

A partnership is an association of people who agree to run the business together with a view to making a profit

the following are characteristics of a partnership business

  • Partners have unlimited liability except limited partners
  • It has no separate legal status; no deference between the owners and the business
  • It lack continuity of existence, death of a partner may end the business
  • Membership is from two (20 to twenty (20) except for professional partnership
  • Financial records are kept private
  • It is easy to set up as compared to public limited companies

  • It has limited capital and lacks borrowing capacity
  • Partners are the owners of the business
  • Expenses and management of the business is shared among the partners