formal document drawn up by partners indicating significant and important aspects of the partnership. Items included are capital contributions, profit and loss ratios, name of the enterprise, duration of relationship, and individual duties.
written agreement by persons establishing a partnership, stating among other things, the nature of the business being formed, the capital contribution of each partner as well as their duties and responsibilities, and the share in net profits of the organization. Also called partnership agreement.
General partners in a business have joint and several liability for debts of the firm, or unlimited personal liability. In a partnership, owners share equally in the profits of the business unless stated otherwise in the articles of partnership, and pay taxes as individuals.
