Partnership

• What is a partnership?

  • Type of business that has between 2 to 20 owners
  • Often found in businesses that provide professional services
• What are the advantages?

  • simple to form business together
  • minimal paperwork once partnership is set up
  • partners can provide specialist knowledge and skills
  • jobs can be shared
  • greater potential to raise finances
  • any losses are shared
• What are the disadvantages?

  • unlimited liability
  • partners have to live with the decisions of others
  • decision making can take longer
  • harder to raise finances in a company
  • short life
  • profit is shared
• What is meant by a partnership having a short life?

  If someone leaves or dies, the partnership ends
• What is a deed of partnership?

  Where a set of rules are outlined which the owners in a partnership agree on
• What are examples of things which can be agreed on in the deed of partnership?

  • what percentages of business owns
  • roles and responsibilities
  • percent of business debt each person has to pay
• What do owners in a partnership pay?

  Income tax on their ownings