Partnership

Written by Fmi.Online Thursday November 17, 2022
A partnership is an unincorporated business entity formed by two or more people. The owners of a partnership are called partners because they join efforts and resources to start the business.

Explanation: 

  Partnerships are like sole proprietorships in that no legal entity must be established. A partnership is established as soon as two or more people agree to go into business together. This is considered a general partnership because all the partners running the operations of the business share the risk and liability. A general partnership only has general partners also called unlimited partners.These general partners split the income and loss of the partnership based on their partnership percentage. For instance, a partner who owns 33% of a partnership would receive 33% of the income or 33% of the loss for the year. Each partner reports this income or loss on his personal income tax return. This is why a partnership is considered a flow-through entity. The income or loss flows through the business to the individual.

In a nutshell:

  • A partnership is an arrangement between two or more people to oversee business operations and share its profits and liabilities.
  • In a general partnership company, all members share both profits and liabilities.
  • Professionals like doctors and lawyers often form a limited liability partnership.
  • There may be tax benefits to a partnership compared to a corporation.
top-arrow
Our Courses are designed to boost your career

Launch your career with Fmi’s Learning Pathway

Choose a learning pathway that best meets your needs and ambitions. Not sure which Fmi learning pathway is right for you? Explore our CareerBuddy videos for help and advice.

Investment banking pathway
  • courses-clock60+ hours
  • courses-desktop9 courses

Investment banking offers many exciting career opportunities for students. From Financial Analysts to Investment Management, and Sales & Trading to a wide range of roles in infrastructure such as IT, Risk or Compliance. This pathway is designed to help you understand the investment banking industry, the roles investment banks are recruiting for, and most importantly, help you to develop the practical skills you need to get into the industry and your preferred role whether this be as part of a school leaver, intern or graduate program.

FMI Online Student join-student-img2 FMI Online Student
55,000+ students currently enrolled
Global markets pathway
  • courses-clock70+ hours
  • courses-desktop10 courses

Global markets provide a range of important products and services to corporates, institutions and governments worldwide from executing trades and managing risk to providing quality research content. A key business area in all investment banks, global markets offers a wide range of career paths for students to consider across all functions and at all levels from school leavers to internships through to graduate programs.

FMI Online Student join-student-img2 FMI Online Student
85,000+ students currently enrolled
Asset management pathway
  • courses-clock50+ hours
  • courses-desktop8 courses

The asset management industry is a global industry worth over 100 trillion US dollars. It plays a crucial role in managing the assets of retail and institutional investors, offering a wide range of exciting careers in doing so. If you’re looking to forge a career in asset management, our Asset management pathway is perfect for you. We help you build the skills all asset managers are looking for and explore everything you need to know about the industry and the wide range of roles available in the sector

FMI Online Student join-student-img2 FMI Online Student
100,000+ students currently enrolled