(b) That's wrong. If the partners cannot themselves carry out all the tasks required to run their business they are not obliged to take on a new partner: partners can engage employees or independent contractors to do the required work. For example, Edward might employ a person to answer the phone, be present in the office and keep records and accounts. Edward might also engage an electrical contractor from time to time, to connect pumps etc to his installations, if he himself is not qualified to do this work. Such employees and contractors are not themselves partners.

It is important to note that partners themselves are not considered to be employees of their firm, and they cannot be paid as such for work done in carrying on the partnership business. Partners' compensation for the work they do is in their entitlement to share in the firm's profits.

If partners 'draw' money from the partnership assets on a regular or occasional basis to meet their living expenses, these payments are not regarded as wages, and the drawings are not deductible for tax purposes from the partnership income.