EXAM

• PARTNERSHIPS

  a business with between two to twenty owners
• agreements

  partnership agreement replaces the act

  • contribution by each partner of time, effort, money and assets
• partnership advantages

  workload is shared amongst partners

  can combine talents

  reasonably cheap and easy to establish

  liabilities shared between partners
• partnership disadvantages

  loss of complete control over business

  financially and morally responsible for all partners business actions

  conflict between owners

  unlimited liability

  death of partner can end the whole business
• vision statement


  a framework for a business strategic planning in the form of an inspiring statement of what a business would like to achive
• mission statement


  a plan of action for the business that states the purpose of a business by defining the business culture, values and ethics