Partnership Flashcards
1
Q
Who owns the business
A
Owned by two or more people
2
Q
Number of owners
A
Two to 20 partners
3
Q
Who controls the business
A
Partners in the business
4
Q
Who finances the business
A
The partners
5
Q
What liability is there
A
Unlimited liability
6
Q
Who keeps the profit
A
The partners or they can invest back into the business
7
Q
How is the business established
A
They will have to sign the deed of partnership
8
Q
What happens if one of the owners die
A
You could consider selling off the entire business
9
Q
Advantages
A
Easy to establish
Each partner files the profits and losses of the business own personal income tax. This way the business does nit get taxed properly
10
Q
Disadvantages
A
The liability for the debts of the business is unlimited
