Parnerships Flashcards
1
Q
What is a partnership
A
A partnership is a business which is owned and controlled by a minimum of 2 people
2
Q
Examples of partnerships
A
Veteniary Surgeons Solicitors Dentists Accountants
3
Q
Advantages of a partnerships
A
Have different skills to offer More capital to invest with Workload Campbell be shared Easy and cheap to set up Financial information is private
4
Q
Disadvantages of a partnerships
A
Profits have to be shared between two people
May be disagreements
Decision making will be slower as both owners have to be on board
They have unlimited liability so the have to sell the own possessions if the business fails and they are in debt
5
Q
What is a sleeping partner
A
A sleeping partner is someone who invests in the business and takes some of the profits but does not take part in the day to day running of the business or any decision making
