One partner may be granted an ownership interest in the firm in return for providing managerial labour, or specialist advice. Partnerships involve a mutual agency relationship. This effectively means that each partner is an agent of the other. Partnerships share profits according to the terms of a formal partnership agreement, or in the absence of such an agreement, evenly among partners. Accounting for partnerships is very similar to that for sole traders, you simply have one Capital Account for each partner.
Partners make drawings in the same way as sole traders.
If one partner dies, or leaves the partnership, that partnership is dissolved. A new partnership MAY be formed immediately. Partners can not normally sell their interest in the firm to another party without the permission of the other partners. There are a number of different types of companies, whose behaviour is regulated differently. Private companies do not HAVE to be audited on an annual basis.