Companies and financial accounting
Companies and financial accounting

Start this free course now. Just create an account and sign in. Enrol and complete the course for a free statement of participation or digital badge if available.

Free course

Companies and financial accounting

1.2 Partnerships

A partnership is a business entity owned by two or more persons who each invest money and/or other assets, and who work together with the aim of making a profit. The greater number of owners means that, in comparison with a sole trader, more finance becomes available – this is a common reason for forming a partnership. A partnership is also a means of sharing the risks and management of the business.

In the eyes of the law, the partners of a general partnership:

  • are agents of the business, which allows the partners to manage the business and enter into contracts on behalf of the business
  • have joint and several liability for the debts and torts of the business.

In the UK, there are three types of partnership: general partnership, limited partnership and limited liability partnership. As the number of partnerships is on the decline, this course will not go into the details of partnerships any further.

B293_1

Take your learning further

Making the decision to study can be a big step, which is why you'll want a trusted University. The Open University has 50 years’ experience delivering flexible learning and 170,000 students are studying with us right now. Take a look at all Open University courses.

If you are new to University-level study, we offer two introductory routes to our qualifications. You could either choose to start with an Access module, or a module which allows you to count your previous learning towards an Open University qualification. Read our guide on Where to take your learning next for more information.

Not ready for formal University study? Then browse over 1000 free courses on OpenLearn and sign up to our newsletter to hear about new free courses as they are released.

Every year, thousands of students decide to study with The Open University. With over 120 qualifications, we’ve got the right course for you.

Request an Open University prospectus371