1. Today’s Schedule – 10/3 Turn in Entrepreneur Bios PPT: Partnerships Activity: Negotiating a Partnership Homework: – Read 8.3 & 10.3

2. Types of Partnerships General: Equally shared responsibilities & liabilities Limited (LP): One general partner who has unlimited liability for the firm – Rest of partners only contribute money (do not manage business)

3. Types of Partnerships Limited Liability (LLP): All partners are limited – Functions like a general partnership – All partners are limited from liability of mistake made by another partner

4. Advantages of Partnerships Easy to start-up – Articles of partnership: legal doc. defining rights and responsibilities Subject to little government regulation Shared decision making – Allows for specialization

5. Advantages of Partnerships Capital – Multiple partners = more assets (money/valuables) – Competitive wages = attract talent Not subject to special taxes – Partners pay taxes on their income only

6. Disadvantages of Partnerships Unless a LLP, at least one partner has unlimited liability Effected by actions of other partners Conflict among partners