Partnerships Flashcards
1
Q
Partnership
A
Two or more people who own a business together
2
Q
Number of owners?
A
Two to twenty owners
3
Q
Who controls the business?
A
Both owners control the business together
4
Q
Who finances the business?
A
Both owners finance the business together
5
Q
What liability is there?
A
There is unlimited liability so owners belongings are at risk if debt is not payed off
6
Q
Who keeps the profits earned?
A
The owners both share the profit
7
Q
How can the business be established?
A
The partners have to sign a deed with the government
8
Q
Advantages
A
Shared responsibility.
More people to contribute towards the capital so the company is more flexible
9
Q
Disadvantages
A
Disagreements could be made possibly causing the business to go under.
Shared responsibility.
