Partnereships Flashcards
1
Q
Define Partnerships
A
Two or more people who share capitol and work together with the purpose of making a profit
2
Q
Advantages to partnerships
A
> More capitol- Compared to sole proprietorship partnershioes can generate more capitol
Tax- This form of business is not subject to business tax. Any profits or losses are under income tax
Complementary skills- The different business owners bring in different sets of skills and working experience
3
Q
Disadvantages to partnerships
A
> All debts and losses incurred by one partner are shared by all partners
Profits- All profits are shared equally amongst partrners
Unlimited liability- These organisations do not have a seperate legal identity from their owners therefore personal property can be used to pay of debts
