A Partnership Flashcards
Which is a characteristic of partnerships?
Unlimited liability for owners
What describes control in a partnership?
It’s shared based on partnership deed
What is a disadvantage of a partnership?
Unlimited liability
What is the easiest way to finance a partnership?
Easier financing due to shared liability and combined assets
What happens if a partner dies in a partnership?
The partnership is dissolved, and a new partnership must be formed.
What is one advantage of running a partnership?
Shared responsibility
What is required to form a partnership?
Register with the CRO and complete Form LP1, along with a signed deed of partnership.
What is the liability of partners in a partnership?
Unlimited liability, meaning personal assets can be used to cover business debts.
What is a disadvantage of profit sharing in a partnership?
Profits must be shared, reducing individual earnings compared to a sole trader.
What is a benefit of keeping partnership accounts?
Confidential accounts with fewer regulations compared to corporations.
