Chapter

4.2. Partnerships: Sharing the Load*

From IntroductionToBusiness OP 8D04gAa

Concepts

1. What is a partnership and how is it established?

   "Can partnerships, an association of two or more individuals who agree to operate a business together for profit, be hazardous to a business’s health? Let’s assume partners Ron and Liz own a stylish a

2. What are the main types of partnerships?

   "There are two basic types of partnerships: general and limited. In a general partnership, all partners share in the management and profits. They co-own the assets, and each can act on behalf of the f

3. What advantages can a partnership offer?

   "Some advantages of partnerships come quickly to mind:\n\n• Ease of formation. Like sole proprietorships, partnerships are easy to form. The partners agree to do business together and draw up a partne

4. What risks and disadvantages should partnership owners consider?

   "Business owners must consider the following disadvantages of setting up their company as a partnership:\n\n• Unlimited liability. All general partners have unlimited liability for the debts of the bu