Glencoe Accounting

Chapter 28: Financial Statements and Liquidation of a Partnership

Working in the Real World

Upon formation, a business must choose whether it will organize as a sole proprietorship, corporation, or a partnership. Each form has its advantages and disadvantages. At Wikipedia's Partnership page, http://en.wikipedia.org/wiki/Partnership, you can read more about how a partnership is formed, what liability issues there are, and how taxation is handled.