Partnerships Unit 8.2
Characteristics of a Partnership A Partnership is similar in many ways to a sole proprietorship, in that the partners all own and are responsible for the business. Partnerships are businesses run by 2 or more people, who share profits (not always equally), and depending on the type of partnership, can be limited in liability from what your partner does. Partnerships account for about 7% of all businesses and 5% of all sales. General Partnership Limited Partnership Limited Liability Partnership (LLP)
Advantages of Partnerships Easy to Open and Close Few Regulations Access to Resources Joint Decision making Specialization
Disadvantages of Partnerships Unlimited Liability Potential for Conflict Limited Life