TYPES OF

PARTNERSHIP
TYPES OF PARTNER’S
General partner.
A general partner is one who shares ownership and management of the business, and is liable to
the extent of his separate property after all the assets of the partnership are exhausted.

Limited partners.
They refer to partners with limited financial liability and they do not take active role in the
management of the firm. A limited partner is one who is liable only to the extent of his capital
contribution
TYPES OF PARTNER’S
Silent partners.
They refer to partners who do not take active participation in the operation of the business, but
they are generally known to be partners of the business

Dominant partner.
They are neither active in the partnership nor they are generally known to be associated with the
business
TYPE’S OF PARTNER’S
Capitalist partner.
This is the type of partner who contributes money or property to the common fund of the
partnership.

Managing partner.
This is the partner who is designated to manage the operations of the business of the partnership.
TYPES OF PARTNER’S
Industrial partner.
This is the partner who contributes his knowledge or personal services to the partnership.

Secret partner.
This is a partner who takes active part in the business, but is not known to be a partner by
outside parties
TYPE’S OF PARTNER’S
Nominal partner or partner by estoppel.
This is a partner who is actually not a partner, but is held out or represented as a partner

Liquidating partner.
This is a partner who is designated to wind up or settle the affairs of the partnership after
dissolution.
ADVANTAGE’S
Pooling of resources.
The partnership is useful in bringing together two or more persons who, as a group, have more
business potential than as individuals. Ideas, managerial talent money, and foxed assets are
frequently combined to produce a successful business.

Ability to obtain capital.

The combined financial resources of all the partners stand behind the negotiations for business
borrowing
DISADVANTAGE
Unlimited liability.
All the partners are table for the actions of each other

Tenuous existence.
The partnership is subject to many eventualities that may terminate or disrupt its operation. It
may be terminated by the death, insanity, or incapacity of a partner. Furthermore, serious
disagreements may be insoluble.
DISADVANTAGE
Independence on management harmony and coordination
The equality of the partners is simple in theory, but sometimes more difficult in practice.
Partners may not agree on certain matters, or division of work assignments may prove awkward.

Problems in share Liquidation.

A partner’s share is not easily disposed of except by agreement with the other partners
Attempting to dispose of a share to an outsider without proper valuation can be a problem.
CORPORATION
Corporation

A Corporation is an artificial being, invisible, intangible, and exists any in contemplation of law.
Its owners are the stockholders who can sell their interests in the corporation without affecting
the continuity of Operations because the life of the corporation is dependent or distinct from
that of the owners or stockholders