1. Partnerships Aims  Identify the characteristics of a partnership Objectives  Define a partnership  Give examples of types of partnership  Explain 3 advantages of a partnership  Explain 3 disadvantages of a partnership

2. A business that is set up by a minimum of 2 people but a maximum of 20. It is a group of individuals working together, sharing ownership.

4. This is a legal document – a contract, which states the agreement between the Partners and the rules that will apply. It states:  Who the partners of a business are  How much money (capital) each partner has put into the business  How profits will be shared  How many votes each Partner will have in any meetings  What happens if any of the partners want to leave the business

5. This legal Partnership is between: The name of the Business will be: The Business activities are: Each Partner agrees to provide the sum of: £ The duties of the partners will be as follows: The bank account will be in the name(s) of: Profits will be shared out: Wages paid will be: Regular Meetings: Overall Decisions on business: Leaving the Partnership: Signed: xxx Dated: xxx Witnessed: xxx

6. Equal Ownership Equal Management Equal Share in Profits If there is no DoP then under The Partnerships Act 1890 all partners have: Types of Business Ownership Video

7. A Sleeping Partner is someone who invests money into the Partnerships but does not play an active role in the business Sleeping Partners have LIMITED LIABILITY

8. Decisions are shared Responsibility is shared Specialisation More Ideas & Knowledge Holiday s become possible Ill health can be covered More Capital Many are the same as a sole trader plus…

9. Responsible for each Partner’s actions Disagreements Profits Shared Unlimited Liability Death or retirement brings partnership to an end

10. What are the 3 mistakes in the following passage? Sole Traders are also known as Sole Proprietors and they own and control businesses for themselves. Businesses do not need much money to set up and profits do not have to be shared. The owner has limited liability. Disadvantages of being a sole trader are that you may not have all the skills to run your business successfully and it can be lonely. Partnerships are businesses run by groups of people of between 2 and 30 partners. Partners have to share their profits with the partners and their shareholders. A legal contract is written between the partners to set out how the business will be funded and controlled. This is called a Partnership Contract.

12. Topic ATopic B In this section write only the things that affect Topic A Write all the things that the Topic A & B share in this section In this section write only the things that affect Topic B

13. SOLE TRADER PARTNERSHIPS Own boss Easier to raise capital UNLIMITED LIABILITY Responsible for partners actions Easier to take holidays/cover illness Able to make your own decisions Able to share responsibility/ decision making Able to keep all the profits Tax benefits Long working hours Easy to run Difficulty raising capital Easy to set up Specialisation Retirement/death brings the business to end Profits shared Disagreements More Ideas Flexibility No one to share responsibility Lack of skills