A partnership is one type of business structure used by many companies with two or more partners. There are different types of partnerships, and some even hire a partnership manager to assist in many responsibilities of the business. To create a partnership, the partners must create and agree upon a partnership agreement. This written contract states details of how the organization will operate and the responsibilities of each member, as well as those of the partnership manager.
There are two basic types of partnerships. The standard form of partnerships is called a general partnership. This type of business structure requires involvement from all partners in business activities. All partners are also responsible for the debts of the business, and all partners must agree on all business decisions. A limited partnership involves one or more limited partners and one or more general partners. Limited partners are those that are not involved in regular business operations and are not responsible for debts of the business. Either type of partnership can hire a partnership manager.
Partnerships hire a partnership manager to make decisions for the business and handle everyday business activities. This person can be a partner of the business or can be a person who is not otherwise associated with the business in any way.
Responsibilities and Duties
A partnership manager is generally responsible for many different aspects of the business. The general partners of the business must consult the manager before making any major decisions. The manager is responsible for overseeing all decisions and business activities.
Hiring a partnership manager often helps alleviate problems between partners because the partners no longer make the major decisions for the business. The partners must trust the manager to make wise decisions and moves for the business. It also helps the partners to understand their roles in the business. The partnership manager delegates duties as needed between the general partners of the business.
The way a partnership operates should all be laid out in the partnership agreement. This agreement should also contain details regarding whether or not the partnership will or can hire a partnership manager and if so, the duties this person will have.
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