In a partnership, are the partners the shareholders?
2007-10-16 09:01:35 · 7 answers · asked by Seevan. 2 in Business & Finance ➔ Other - Business & Finance
Partners are the owners of a partnership which is the corresponding ownership role of shareholders in a corporation. There are no shareholders in a partnership, that term is used for the owners of corporate stock.
Partnerships and corporations are distinctly different forms of business enterprises and the legal and finacial aspects of being a shareholder rather than a partner are also significantly different.
2007-10-16 09:04:21 · answer #1 · answered by BAL 5 · 1⤊ 1⤋
no, shares are not issued in a partnership, instead a partnership agreement should be drawn up specifying the % of the business that each partner owns. although sometimes or most times an agreement is vebal, such as husband and wife partnerships
when the accounts are completed each partner is allocated a % of the profits as per the agreement.
most times the % is split equally, but in some instances it can be based on the money they initially invested, so say 10,000 was needed to start a partnership, A puts 6000 in and B puts 4000, the profit share would be a 60% and b 40%.
its gets more complicated if someone joins a partnership after it has began trading but i wont go into this.
2007-10-16 17:04:39 · answer #2 · answered by Paul S 5 · 0⤊ 0⤋
No.partners and shareholders are different meanings.
in partnership there is only partners ,there is no matter of shares or debentures,so there is no shareholder.
shareholder means holders of the shares of the company.shareholder just pay money and buy shares of the company and take profit according to the value of the shares.
shareholder just invest money and get profit without doing anything.partners works for the company and they share profit and loss according to predefine ratio.shareholder not liable to any loss of the company.
2007-10-16 16:12:58 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Yes
2007-10-16 16:05:00 · answer #4 · answered by Richard S 2 · 0⤊ 3⤋
there are no shares in a pardonership. Shares are issued in corporations.
2007-10-16 16:10:23 · answer #5 · answered by Jan Luv 7 · 0⤊ 0⤋
No. There are no shares to be holders of. Shares refers to shares of stock.
They are "Partners".
2007-10-16 16:05:53 · answer #6 · answered by Wayne Z 7 · 0⤊ 3⤋
yes.
2007-10-16 16:04:30 · answer #7 · answered by hottotrot1_usa 7 · 0⤊ 3⤋