1. PMNQBM - BICS1 A partnership is a business association between 2 to 20 people. (Professionals e.g doctors, solicitors can have more than 20) Common partnerships are shops, vets, doctors, solicitors and dentists.

2. PMNQBM - BICS2 Class Discussion…… In groups of 4 discuss, why a sole trader may want to take on a partner/s?

3. PMNQBM - BICS3 TASK Write a short paragraph stating why a sole trader may take a partner into the business. Use the following words in your answer.  Finance  Expand  Diversify  Social time  Decision making

4. PMNQBM - BICS4 Sleeping partners have limited liability as long as they take no active part in the running of the business. However, there must be at least one general partner with unlimited liability. General partners make all the decisions and do most of the work

5. PMNQBM - BICS5 If a partnership runs into debt, the general partner/s who have unlimited liability will be held responsible for the debts of the partnership and may lose their personal possessions. A limited or sleeping partner however has limited liability and can only lose what s/he invested in the business they will not lose personal possessions

6. PMNQBM - BICS6 Capital – How much each partner invested Share of profits/losses Drawings Duties Introduction of new partners Disputes General/sleeping partner PARTNERSHIP DEED A Partnership Agreement might include:

7. PMNQBM - BICS7 TASK Give reasons why you think it important that the following areas should be covered in a partnership agreement. name of business and partners Capital Share of profits/losses Drawings Duties Introduction of new partners Disputes

8. PMNQBM - BICS8 ADVANTAGES Increased capital Larger scale Specialisation Affairs private Risks and responsibilities are shared DISADVANTAGES Unlimited liability Disagreements Limited number of partners Profit sharing Reformation required if partner dies

9. PMNQBM - BICS9 FINANCE Partners’ savings Partnership profits from previous years Inviting a new partner to join Bank loan Bank overdraft Government grants Trade credit

10. PMNQBM - BICS10 OBJECTIVES Possible objectives of a partnership business: To survive To maximise profits To expand the business To improve partners personal status To have a good image in the community PROFITS

11. PMNQBM - BICS11 Partnership Questions 1.Explain the term “Partnership” 2.What is the maximum number of partners allowed in a partnership? 3.Outline 4 advantages and 4 disadvantages of a partnership. 4.Explain the term “Sleeping Partner” (explain how they differ from a general partner). 5.Suggest 3 sources of finance a partnership could use to expand the business. 6.Suggest 2 objectives a partnership might have in the first year of the business. 7.Suggest 2 objectives a partnership might have after 3 years of successful trading of the business. 8.Design a poster outlining what you know about a partnership. Include a definition, advantages and disadvantages, sources of finance and possible objectives.

12. PMNQBM - BICS12 Partnership Poster Design a poster outlining what you know about a partnership. Include a definition, advantages and disadvantages, sources of finance and possible objectives

13. PMNQBM - BICS13 Case Study Marie Bell is a recently qualified hairdresser and wants to open her own salon. She doesn't feel she knows enough about the business world to set up on her own. Her friend Simon Hartley is an experienced accountant, and has money that he would like to invest in a business venture. She is considering asking him to go into partnership with her. What would the advantages and disadvantages be for Marie? (6marks)

14. PMNQBM - BICS14 True or False Quiz http://www.bbc.co.uk/schools/gcsebi tesize/business/aims/http://www.bbc.co.uk/schools/gcsebi tesize/business/aims/ Click on Sole Traders and Partnerships