Partnerships

Define a Partnership

a business owned by two or more people, but no more than 20

Describe a Partnership

• shared control

• unlimited liability

• profit sharing

Advantages of a Partnership

• easy to set up

• combined skills

• access to more capital

Disadvantages of a Partnership

• shared profits

• disputes within partners

• unlimited liability

Outline the Partnership Agreement

• all the terms of the relationship should be set up

• this includes, partnership shares, assets, and distribution of profits

Outline the Partnership Act 1985

if there’s no written agreement in place, this act is used to outline the legal framework for partnerships