1. To define what is meant by a business partnership.
PARTNERSHIPS
To define what is meant by a business partnership.
To understand who owns, manages and shares the profits in a business partnership.
To investigate a Deed of Partnership.
1.      

2. Any Others?? PARTNERSHIPS
A group of people (often with similar interests) who come together to share the workload and responsibility of running a business.
Minimum 2 – Maximum 20
Lawyers
Architects
Accountants
Any Others??

3. Partnership A shared workload Shared ownership Share profit
Shared decision making
Shared liability for debts

4. PARTNERSHIPS UNLIMITED LIABILITY
Each partner is responsible for the entire debt of the partnership, so if one partner makes a bad decision then it has to be met by all of the partners.
UNLIMITED LIABILITY

5. OWNERSHIP & MANAGEMENT
Unless stated in the “Deed of Partnership”; Partnerships have
Equal
Ownership
Equal
Management
Equal
Share in
Profits

6. PARTNERSHIPS Why Partnerships? Who owns a partnership?
The main reason is usually to expand the business by an increase in capital or to gain specialist skills that are required for the business to develop
Who owns a partnership?
The business is owned by the partners equally e.g. if there are 3 partners then they will each own a third of the business, this is the case unless stated otherwise in the deed of partnership.
Who manages the business?
The partners share the control of the business equally unless the partnership agreement states otherwise. In many partnerships each partner may run a separate department.

7. SETTING UP A PARTNERSHIP
Deed of
Partnership
How profits and losses are to be shared.
How much money each partner has put into the business
How much each partner gets paid – “salary.”
The working arrangements of the partnership e.g. who has responsibility for which part of the business
Arrangements for removing a partner or adding a partner to a business.
Arrangements for ending the partnership and the dividing up the assets once the partnership is dissolved.

8. DEED OF PARTNERSHIP 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: x Dated: x
Witnessed: x

9. ADVANTAGES OF FORMING A PARTNERSHIP
Easy to set up.
Business can gain professional help through taking on a qualified partner.
New Partners - New Ideas
Extra partners bring extra capital
Responsibility for running the business (both decision making and workload) is shared
Finances are kept private
Division of labour leads to greater expertise

10. DISADVANTAGES OF FORMING A PARTNERSHIP
Unlimited liability for the debts of the business
Finance still limited
Lack of continuity
No consultation required (Deeds of Partnership are only recommended)
Decision making more complex