1. Partnerships
Lesson L060007

2. Objectives
1. Define and examine the distinguishing characteristics of a partnership.
2. Describe special types of partnerships.
3. Identify components of a partnership agreement.
4. Compare and contrast the advantages, disadvantages, and considerations when developing partnerships.

3. How does a partnership work?
A is a form of business where or people go into business together.
A. Partners their to the business.
B. A agreement that partnership is .
It explains the of each and what of the business each .

4. How does a partnership work?
C. and are divided as .
D. The partnership own .
E. Partners share , so they responsibility for and for acts.
1. Each partner is responsible for the partnership’s .
2. Each partner is for the partners’ acts as a

5. How does a partnership work?
F. are .
In a partnership, it is necessary to a partnership return and to taxes .
G. A partnership is normally upon the of a .

6. What are the special types of partnerships?
partnerships and limited companies
A. A is a work with an individual ( ) who provides but has no powers; the person is only for the amount .

7. What are the special types of partnerships?
B. A (LLC) is a form of business offering set to owners to the point of their personal money invested.
1. LLCs have at least member.
2. LLC are the of the LLC.

8. What are the special types of partnerships?
3. A member’s ownership in just one LLC is called a
Membership interests are often into units which, in turn, are often called —units to divide of the business for of making.
The person with the member is referred to as the .
The runs the operations of the LLC.

9. What are the special types of partnerships?
4. LLCs file their with the of in the state where the business is .
The LLC must its and state its business .

10. What are the special types of partnerships?
5. LLCs will be fees by the state, and membership may be by state and federal governments.
6. An must be , usually by an .
This is a document that , , and the of the partners; it also income from the .
of partnership LLCs are the as partnerships.

11. What are the special types of partnerships?
8. Advantages of LLCs
a. People are from for the or of other partners.
b. LLCs prevent taxation.
9. Disadvantages of LLCs
a. There is in raising because (banks) are to recover the assets of the .
b. Some states a for LLC partnerships.

12. What are the components of a partnership agreement?
A partnership agreement is a that all partners to and to which are held .
An agreement is to a between members of the .
A. It is for agreements to contain articles, usually up by an .

13. What are the components of a partnership agreement?
1. Article 1 states the of the partnership, type of , of business, of partnership, and of business when to other states.
It also the principal of business.

14. What are the components of a partnership agreement?
2. Article 2 contains details about matters, stating contributions of partners in addition to details about and .
It sets the year, report , and statements, of profits and losses, and details.
3. Article 3 sets the and of partners.
This article states responsibilities, the proper of in banking, procedures, and the proper handling of and outside .

15. What are the components of a partnership agreement?
4. Article 4 states changes.
Sections include details about partners, transfers, of the partnership, partner , and the of partnership .
5. Article 5 is set aside for purposes as established by the partners.

16. What are the components of a partnership agreement?
B. The agreement is by all and must be if any partnership are made.

17. A. There are a advantages of a partnership.
What are the advantages of a partnership? What are the disadvantages of a partnership? What considerations should be considered when developing a partnership?
Partnerships
A. There are a advantages of a partnership.
1. The of each partner is .
2. The of each partner is .
3. and responsibilities can be among the partners.
4. The business is .

18. B. There are a few of a partnership.
What are the advantages of a partnership? What are the disadvantages of a partnership? What considerations should be considered when developing a partnership?
B. There are a few of a partnership.
1. Partners may agree on that need to be made.
2. or can cause the of the business.
3. There is liability among the partners.
4. Each partner is liable for business .

19. C. when developing a partnership:
What are the advantages of a partnership? What are the disadvantages of a partnership? What considerations should be considered when developing a partnership?
C. when developing a partnership:
1. It is to use and in a with a partner.
2. Partners often have goals for the business.
usually are about things.
4. between the partners can be .

20. 5. members agree to a member into the partnership.
What are the advantages of a partnership? What are the disadvantages of a partnership? What considerations should be considered when developing a partnership?
5. members agree to a member into the partnership.
6. Partnerships usually have years of .
If they do not, they are referred to as —partnerships that may be or modified at any time.
are closely to the business.
8. The issue of liability is of great concern.