accounting,markerting,finance

Question 1 Partnership - Is defined as a legal relationship created by way of a contract between two or more persons, in terms of which each of the partners agrees to make a contribution to the partnership, which is carried on for the joint benefit of the parties with the object of making a profit. Contribution by partners - Each partner must contribute something or give a binding undertaking to make some kind of contribution to the partnership that has commercial value, such as money, property, skill, knowledge, expertise, contracts or experience. As partners contribution must be exposed to the risks of the partnership business. If a partner makes a contribution on condition that it will be returned to him or her even if the expertise fails, that contribution will not meet the requirement of essentialia. - However, partners can agree that a partner will retain full ownership of the goods that he or she contributes to the partnership, in which case only the use of the good is made available to the partnership. As the use still has an economic value, the contribution would remain valid, despite his or her retention of ownership. - The business should be carried on for the joint benefit of the parties. It is one of the essentialia of a partnership that each partner must be entitled to share in the net profit of the partnership, but partners need not receive equal shares in the profit. - An agreement that a partner will share in the profit only if the net profit exceeds as stipulated profit margin is also valid. Although such a partner will not share in the profit if the profit margin is not exceeded, he or she at least has a right to share in it when the business of the partnership improves. One partner cannot be entitled to all the benefits while another partner has to bear all the losses. However, it is possible to exclude a partner from sharing in a net loss.