Business and Personal Finance Dictionary

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• PARTNERSHIPS
  
  Two or more persons carrying on a business in common with a view of profit. Every partner is an agent of the firm and thus binds each and every partner. Accordingly each partner is jointly and severally liable for all of the debts not just their percentage share. The firm is not a separate legal entity and therefore cannot enter into any contractual obligations and the each member (partners) is principal and agent of the others.
  
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