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Types of business organisation

Characteristics of a general partnership

A business must be carried on with a view to profit. This means that persons
involved in the partnership intend the business to yield a profit.

 A business includes ‘every trade, occupation or profession’.

 The business can be a single transaction.

 There must be some joint business activity; merely sharing revenue is not
enough.

 Joint ownership of property that happens to produce revenue is insufficient to
establish a partnership. The term ‘business’ necessarily implies some activity.

 A partnership begins as soon as the partners start their business activity.

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