What is a partnership?

A partnership is an enterprise jointly funded by two or more individuals. Partners * * * share the operating income of the enterprise and bear joint liability for operating losses. It can be operated by some partners, and other partners only contribute to bear the losses, or it can be operated by all partners. In Britain and America, partnership enterprises are regarded as natural person enterprises, while in France, Germany, Japan and other countries, partnership enterprises in the form of unlimited companies are recognized as legal person organizations. Compared with a sole proprietorship enterprise, a partnership enterprise has the following main advantages: as many partners * * * raise capital, and * * * assume the liabilities and risks, their fund-raising ability is greatly improved. At the same time, the partners are fully responsible for the profits and losses of the enterprise, which means that they guarantee the enterprise with all their property, thus helping to improve the reputation of the enterprise. But partnerships also have their own shortcomings. Because the partnership enterprise is established according to the contract between the partners and operates together according to the principle of consensus, it will bring complicated legal procedures and decision-making delay when accepting the capital increase of new partners. In addition, all partners are jointly and severally liable for the debts of the enterprise, which makes those partners who cannot control the enterprise face great risks.