Articles Of Partnership

AAA

DEFINITION of 'Articles Of Partnership'

A document that formalizes an agreement between parties who want to enter a business arrangement to pool their labor and capital and in which all owners are equally responsible for the company's liabilities and entitled to its assets according to agreed-upon percentages. In addition to being an important legal document, the articles of partnership can be useful in preventing and resolving disagreements among partners since it clarifies the terms of the relationship.

INVESTOPEDIA EXPLAINS 'Articles Of Partnership'

The articles of partnership will typically supply the name of the partnership, its principal place of business, the purpose of the business, term of the partnership, each partner's initial capital contribution, each partner's percentage of interest in the partnership, how profits will be distributed, how the partnership will be managed, how salaries (if any) will be distributed, how and under what conditions partnership rights can be transferred or sold, and other information that is essential to the business arrangement.

RELATED TERMS
  1. Articles Of Incorporation

    A set of documents filed with a government body to legally document ...
  2. Capital

    1) Financial assets or the financial value of assets, such as ...
  3. Silent Partner

    An individual whose involvement in a partnership is limited to ...
  4. Liability

    A company's legal debts or obligations that arise during the ...
  5. Limited Partnership - LP

    Two or more partners united to conduct a business jointly, and ...
  6. Partnership

    A business organization in which two or more individuals manage ...
Related Articles
  1. Retirement

    Discover Master Limited Partnerships

  2. Personal Finance

    Protect Your Personal Assets

  3. Options & Futures

    Asset Protection For The Business Owner ...

  4. Bonds & Fixed Income

    Can I invest my IRA in an entity, business ...

Hot Definitions
  1. Capitulation

    When investors give up any previous gains in stock price by selling equities in an effort to get out of the market and into ...
  2. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  3. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  4. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  5. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  6. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
Trading Center