SAMPLE OF LITERATURE REVIEW
In the past many writers have dealt extensively in writing business accounting, economic, purchasing and supply have dwelt much on partnership as a form of business. This chapter happens to gather their ideas to enable every reader of this work to have background knowledge of partnership business and what it entails.
For convince and to ensure that important terms in partnership are discussed this chapter is divided into two parts namely general nature of partnership and types of partners and ranks, formation and its operation.
Part one, the general nature of partnership business considers the historical background of topic and defines the terms of references. Stating the essential factors, the relevant laws in partnership, the advantages and disadvantages of partnership, kinds of partnership with reference to limited partnership due to its unique nature, partnership by stopped, and the entity concept. It closes with the consideration of characteristics of partnership business.
The second part reviews the formation and operation of partnership business. It continues by considering the formation procedures and (if any) a content of the partnership deed. More also it is not the coming together of people that is in partnership, but to also test the existence of partnership.
Other areas of importance in partnership conversed is operation which unveil such areas as the power and liability of a partner and its limitation to liability are considered.
This is a fact that must be disclosed in partnership business the minimum number of persons that should be in are two in number but the maximum number is (20) twenty person. For some specific business like the banking sector the maximum number is 10 people while other ventures like accounting firm, group of solicitors, estate valuer could be up to twenty. For professionally qualified member they could be more than twenty.
In normal condition if members are more than twenty they must register as a company under the company and allied matters decree 1990 (CAMD). This registration restriction does not apply to professional bodies like accountants and legal practitioners. (Section 9 (2) CAMD 1990).
The members that formed partnership are called partners and their partnership is known as a firm like legal practitioners, accountants, medical doctors or architects partnership firms thrives around the good name of their senior partners and members. Example includes Gani and Co, Rotimi Williams firm of Chartered Accountants, Ani Ogunde and Co, Eghueghwu and Co and so on.
In view of it all before any partnership business can exist the following condition must be present (Anyanwu, 1990)
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- The business must be carried out in common for the benefit of all partners.
- Two person must come together less it should be called sole proprietorship
- Their ultimate aim which is profit making must the members of the Hauseatic league operated extensively through partnerships.
In England, the law of part of partnership came into the common law from the merchant law (Encyclopedia Americana 1981).
In the medieval period there were two types of partnership, namely commence a and societies. The commence a is a limited partner in which a financier will come together with a merchant for a specific business like an expedition venture. The financier provides the cash but took no part in management. The profit will be shown at the end of the business being the difference between the expended amount on the venture and the return from the business (Nwoko 1990) a good example of an early merchant in this era is macco Polo – who attempted to establish a trade route to the far East. A common contract during this time would involve a loss to the merchant adventure. The merchant took an active role in trading bearing all the physical and emotional risks upon the successful completion of every journey. The capitalist take most of the profiles (up to 75%) while the merchant settle for the remaining 25% (Hisrich 1985).
The societies were more or less a general form of partnership in which individual member took part in the management; it was also like commencea whose business is within a defined period of time. Profit is calculated on the completed ventures and shares the return on an agreed formula. This become more popular as the need arise for more cash to finance ventures.
In partnership business on this part will not be complete if, issues on admission, amalgamation, retirement and dissolution of partnership business, all these should be considered in course of writing and a conclusion.
