Accounting Question (1 Viewer)

[hatty]

sup

what is the meaning of the term "Partner" in relation to the acocunting industry?

thanks

 

[xiao1985]

u mean partnership as in contrast to sole proprietorship and company???

partnership usually means taht more than one person own the company, but each and every owner are still personally liable for all the liabilities incurred in the business...

u usually see small legal firms, doctors(gp), optometrists form partnerships...
the adv over sole proprietorship is that u have pooled resources to become more competitive...

 

[hatty]

i c.

so basically when i reach "partner" status, im basically a boss of the company, only, there are other bosses?

 

[xiao1985]

yeh more or less... the disadv is that u are liable for financial consequences for other bosses's actions... so when they decide to borrow 30 gran from the bank and ran away to png, u have to pay the 30gran for them...

 

[§eraphim]

partners in a big 4 firm can be broken down into equity and salaried partners.

 

[theone123]

isnt the big 4 firms formed by partners and not a corporation

 

[Minai]

yeah Big4 accounting firms are partnerships.

 

[hatty]

interesting. so how long and hard do u have to work to become a partner in one of the big4 firms?

 

[Minai]

depends
obviously you have to work hard.

I've read partner's profiles on Big4 websites and generally, they've been in the company around 10 years

 

[hatty]

cool, it'll take me around 7 years then.

thanks all