Business Studies

What is Partnership Business? Types of Partnership

len Alfred Ajibola - Fri, 17th April, 2020 @ 12:15 PM

Topics in Business Studies

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Academic Questions in Business Studies

Please click here to see all Questions and Answers

A one-man business is termed _____.

  • A. Proprietorship

  • B. Sole Proprietorship

  • C. Individual Entrepreneurship

  • D. Sole Trader

  • E. All of the Above

  • F. None of the Above

Which of the following is not a function of the wholesaler?

  • A. They distribute goods

  • B. They store goods

  • C. Specialization of goods

  • D. They bring about price variability in goods

  • E. They act as shock absorbers during the movement of goods

  • F. Packaging of goods

A person employed by an organization to carry out the everyday duties of a typical office, and at the same time perform a couple of other functions for their company which may vary from one company to another, is termed a _____.

  • A. Secretary

  • B. Personal Assistant (P.A)

  • C. Secretary General

  • D. Clerical Staff

  • E. Supervisor

  • F. Bookkeeper

Dual Entry System - Len Academy

The above image best describes the _____.

  • A. Ledger system

  • B. Journal system

  • C. Double entry system

  • D. Balance sheet system

  • E. Principles of accounting system

  • F. Balanced accounting system

An accounting system focused primarily on a balanced debit and credit side is termed _____.

  • A. Ledger system

  • B. Journal system

  • C. Double entry system

  • D. Balance sheet system

  • E. Principle of accounting system

  • F. Balanced accounting system

With regards to money, which of the following statement is incorrect?

  • A. Money is crucial for the survival of every human being

  • B. Money is completely advantageous

  • C. Money is defined as anything that is generally accepted as a medium of exchange

  • D. Monopoly is said to exist when money and wealth exists in the hands of a few

  • E. Excess money in an economy can lead to inflation

  • F. When a person receives money that isn't commensurate with the job he or she had done, then that's underemployment

Which of the following statement is wrong with regards to business?

  • A. Business involves the exchange of something for another thing or money

  • B. Business is an economic activity

  • C. In business, profit goes beyond money

  • D. Businesses do not have social responsibilities to their customers

  • E. The exchange of services is an aspect of business

  • F. Businesses can be affected by government policies

Consumer _____ are the laws and methods put in place by various agencies so that consumers can enjoy maximum satisfaction on the goods they buy and services rendered to them.

  • A. Protection
  • B. Policy
  • C. Rights
  • D. Defence
  • E. Guide
  • F. Safety

Partnership in Business:

A business structure can exist in various forms. In this regard, partnership exists as one of the form of business structures.

Partnership in business is often considered to consist of 2 - 20 persons, excluding married couples; coming together with the intentions to utilize their money and skills for the purpose of building a business together.

Please read on the concept of a business structure here.

As a form of business structure, a partnership must be legally agreed upon. This implies that all members comprising the partnership business structure must agree to the terms and conditions of the business. Regardless, a partner (member of the partnership) may take loan on behalf of the partnership business structure provided the legal agreement permits it.

Please read on sole proprietorship here.

Types of Partnerships

Partnership can exist in three forms or types. These are:

  1. General Partnership (GP)

  2. Limited Partnership (LP)

  3. Limited Liability Partnership (LLP)

You can read on the forms of division of labour here.

1. General Partnership

In general partnership (GP), all the partners must contribute in financing the business. In addition, their various and unique skills may also be jointly utilized towards propelling the partnership business.

General partnership requires that the partners equally share the profit generated from the business; while also bearing the loss together. Interestingly, they will also share equally any debt incurred in the business; even if it's illegally obtained by one of its members.

Please read on the concept and types of cost here.

2. Limited Partnership

A limited partnership (LP) implies that at least, one member must have a limited control of the partnership business. In this case, the LP must have at least one general partner and one limited partner.

A limited partnership must consist of one or more general partnerships; and at least, one limited partner. It should not be confused with the limited liability partnership whereby all the partners share a limited liability in the business.

In most cases, limited partners serve only as investors in the business. To this end, they tend to accept a lesser liability when things go wrong in the business, unlike the general partners who operate the business and will accept a greater liability.

Please read on deferred payment and its benefits here.

3. Limited Liability Partnership

A limited liability partnership (LLP) exhibit some of the features of limited partnership and corporations. This is so because some or all of the partners have limited liabilities (depending on the country's law where it is practiced); and they can exercise their right to directly manage the business if the need arises.

You can read on corporation here.

It is important to state that each of the limited liability partner is not liable for another partner's mistake in the course of business. Similarly, personal liability in partnership is limited to each member in accordance (ratio) to their contributions towards the business setup.

Please read on the advantages and disadvantages of partnership here.

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Amazing facts in Business Studies

Utrecht - Len Academy

According to the Global Bicycle Index, Utrecht in Netherlands is the most bike-friendly city in the world

The world's 100 richest people earned enough money in 2012 to end global poverty four times over

Notable points in Business Studies

Consumer protection refers to the ways or methods through which consumers enjoy maximum satisfaction from the goods they buy and services rendered to them.

The agencies of consumer protection assists in protecting the consumer rights. These agencies may also be referred to as the organs of consumer protection. Basically, we have three of them, they are:

  1. Government Agencies

  2. Independent Agencies

  3. Legislation

Please read on consumer protection here

One of the responsibilities of the government of every nation is to set up agencies or organizations that will protect the interest of the consumers and invariably, the people.

Below are some of the government agencies of consumer protection:

  • National Drug Law Enforcement Agency (NDLEA)
  • National Agency for Food, Drug Administration and Control (NAFDAC)
  • Consumer Protection Council (CPC)
  • Rent Tribunal
  • Ministry of Health
  • Ministry of Commerce
  • Ministry of Transportation
  • Ministry of Environment
  • National Wages and Salaries Commission

Please read on the government agencies of consumer protection here