Partnership Flashcards
1
Q
What is a partnership
A
Is a business where there are 2-20 owner of the enterprise. They also have an unlimited liability like a sole trader
2
Q
What could partners share
A
- ownership
- profit
- decision making
- work load
- liability for debts
3
Q
What can partners dispute about
A
- decision making
- holiday allowed
- sick pay
- wages
- purchasing stock
4
Q
What is the deeds of partnership
A
A document that outlines the responsibilities between the owners
5
Q
What are the deeds of partnership
A
- name of business
- name of partners
- how profit will be split
- duties if partners
- wages
- meetings
- how they can leave the partnership
- signed and witnessed
6
Q
Advantages if partnership
A
- specialist skills
- illness less of a problem
- easy and cheap to set up
- financial info kept private between partners
- more capital available
- easy to take extra partner (sleeping or silent)
7
Q
Disadvantages if partnership
A
- profit has to be shared
- unlimited liability
- disagreements
- limited number if partners
- poor performance from other partners
