1.5.2 - Partnership Flashcards
1
Q
What is a partnership?
A
When two or more persons join together to manage a business
2
Q
What are the three types of partnership?
A
- traditional / ordinary
- limited partnership
- limited liability partnership
3
Q
Who is a limited partnership usually used by?
A
Mainly by private equity investors
4
Q
Which partnership is most and least common?
A
Most - traditional
Least - limited partnership
5
Q
Who is a limited liability partnership usually used by?
A
Accountants, solicitors, surveyors
6
Q
What are the three types of partner?
A
- salaried
- equity
- sleeping
7
Q
Salaried partner
A
Receives a salary rather than a share of the profits
8
Q
Equity partner
A
General partner who receives a share of the profits
9
Q
Sleeping partner
A
Partner who invests in the firm, but does not actively manage the business
10
Q
Traditional Partnership
A
- Two or more persons carrying on a business together with the AIM of making a profit
- Each partner is personally liable for the debts of the partnership
