Partnerships Flashcards
1
Q
Advantage of partnerships
A
• More capital is available to the business due to the potential number of owners.
• More ideas can be generated when developing and operating the business.
2
Q
Disadvantage of partnerships
A
• Profits have to be shared
• General partners suffer from unlimited liability.
3
Q
What are the two types of partner
A
- A general partner
- A limited liability partner
4
Q
What do limited partners may not do
A
• Take part in the management of the partnership.
• Make contracts on behalf of the partnership.
