AT Patent and Companies Registration Agency (PACRA), I met one of the followers who knows about my passion for the work towards Small and Medium Enterprises (SMEs) in the country.
I was at PACRA doing some consultancy work on behalf of my client.
This gentleman had a burning problem in his heart which he needed to sort out with immediate effect.
He was at PACRA to register a business name under a partnership arrangement with his friend.
When he saw me, he could not let me go to do my other business in the day for he was determined to solve the problem.
However, I reminded him that whatever he wanted to know on the partnership kind of business, forms part of the consultancy work on my part.
He was so determined to know about the partnership that to him, a charge for consultancy work did not bother him in any away and this gave me a pride to offer consultancy work because I know how difficult it is for this kind of business among the SMEs.
I took him to my office in the town centre and explained to him what a partnership kind of business is all about.
However, today, in my business column I have taken this opportunity to talk about this kind of business.
The partnership kind of business is described as that which is formed by two or more owners who agree to carry business as co-owners and through the partnership agreement which I will talk about later, agree to share profits in the agreed ratios among others.
However, I want to mention here that the partnership kind of businesses suffer setbacks in this country because partners fail to hold on to the partnership agreement because of selfish motives down the line.
A partnership kind of business is traced way back to England where the 1890 partnership act was first coined.
And one prominent element of the partnership act is a document called the partnership agreement.
This document is very important in the sense that, it is the documents which bind partners together as long as the business exists.
The prominent feature on this document is the manner in which profits or losses will be agreed to be shared among the partners.
The partnership kind of business is started by contributing what is known as capital and this could be money or money in kind and the high ratios go to partners who contribute more capital so that at the time of sharing profits, can have more shares than those who contribute less.
A partnership also remunerates the active partners and those are the ones who become so active in the running of a business.
It is important to know that, active partners can be remunerated only through allowances and salaries unless the partnership agreement states clearly the participation of sharing profits or less in that area.
It is important to know the other area in which the   partners can enjoy wealth in a business, is through drawings.
Partnership according to the partnership act drawn from the act of 1890, allows partnership to with- draw money or goods even before the clear picture is made known after preparation of financial statements.
And of course, the biggest  partnership kind of business has is that, in case of debts that can be contracted by  partners, can be shared by all partners and worse still, is that the payment of debt for each partner extends to personal items in case where the doubt is still hanging.
That is why it is important to the partnership under mutual trust and honesty.
As I mentioned earlier on, a partnership kind of business rarely succeeds in this country because of selfish and dishonesty tendencies.
There are tendencies where other partners go on to withdraw money behind the backs of their friends and apply such money to personal things.
And the other major problem is the non- preparation of proper records to give a clear picture to the direction the business is being driven.
Problems usually set in and that, disputes are taken to the court of law to give a fair ruling.
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