Articles of partnership,
Definition of Articles of partnership:
Parties agree to articles of partnership voluntarily. An articles of partnership agreement is not a legally required by any regulatory body but is considered a best practice. Articles of partnership can be useful in preventing and resolving disagreements among partners since it clarifies the terms of the relationship and outlines how a partnership's assets are shared.
The internal rule book of a limited partnership firm; similar to the articles of association of an incorporated firm. A limited partnership consists of general partners who manage the firm and are jointly-and-severally liable for the firms debts, and limited partners who are liable to the extent of their capital contribution. Limited partners cannot participate in the management of the firm and lose their limited liability status if the do. See also agreement of partnership.
Articles of partnership is a contract that forms an agreement among business partners to pool labor and capital and share in profit, loss, and liability. Such a document acts as a rule book for limited partnerships by outlining all the conditions under which parties enter into a partnership. Articles of partnership may also be referred to as a partnership agreement, especially outside of North America.
How to use Articles of partnership in a sentence?
- Articles of partnership formalize an agreement among business partners to pool labor and capital and share in profit, loss, and liability.
- Articles of partnership should spell out who has what duties, but it doesn't have to delegate every task that could conceivably come up.
Meaning of Articles of partnership & Articles of partnership Definition