partnership Flashcards
1
Q
define what is meant by a partnership
A
an agreement between 2-20 people to take joint responsibility for the running of a business
2
Q
what does the deed of partnership outline
A
profits and losses shared, how much each partner invests, voting rights, arrangements of ending ptnr ship, responsibilities
3
Q
what is essential in starting a partnership
A
make sure you know the partners background, their approach to business, and vision for he ptnr ship
4
Q
give 5 advantages of a sole trader
A
- easy to set up
- shared responsibility for debt
- shared responsibility for workload
- increased contribution of capital
- increased expertise and skills
5
Q
give 5 disadvantages of a sole trader
A
- unlimited liability
- disagreements between partners
- shared profits
- workload distribution
- need for a deed of partnership
