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Trusts and Estates Videos 178 videos

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Finance: What is a partnership? 23 Views


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Description:

What is a partnership? A partnership is an arrangement where two or more parties agree to form a business in cooperation with each other. Partnerships can be created between individuals, corporations, institutions, or even governments. In most but not all cases, some kind of partnership agreement is signed that outlines the parameters and obligations of each partner. Profits and liabilities are allocated in accordance with the agreement, as not all partners are automatically equal ones. The details of each partnership is unique to the enterprise in question.

Language:
English Language

Transcript

00:00

finance a la shmoop. what is a partnership? a marriage. joint ownership

00:08

of a bar. when two dudes put up half the dough each to share 50/50 in a time [two different people offer money for keys]

00:14

machine. well a partnership is just the merging

00:16

of two individuals in doing a given business deal or setting up a business

00:20

structure. if both are owners then both are liable for you know bad things

00:26

should they happen. partnerships carry a lot of financial danger if one partner

00:31

goes off the rails and decides to commit fraud in the name of the company or that

00:35

evil partner enters into a stupid company bankrupting contract, well then [bad contract sold to unsuspecting victim]

00:40

both parties pay for it. the innocent partner pays just as much in the form of

00:45

whatever financial damages befall the partnership as the evil one, and

00:49

partnership liabilities include personal assets if the partnership is structured

00:54

like a general partnership with limited partners having no personal liability so [ liability structures defined]

00:59

for all the good that a partnership can have it can get bad and ugly so you got

01:06

to enter partnerships carefully. spend lots of dough on lawyers before you set

01:09

it up so you don't have to after. [money exchanged for partnership contract ]

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