A partnership is a type of small business that is shared between two or more people. Profits, debts, and decisions for these businesses are decided on between the group.
Examples:
-Dental offices
-Restaurants
-Accounting firms
-Small Stores (Toys, Jewelry, etc.)
Examples:
-Dental offices
-Restaurants
-Accounting firms
-Small Stores (Toys, Jewelry, etc.)
Advantages- Easy to establish
- Ability to raise funds is increased - Variety of skills, knowledge, and contacts - Payments are smaller for each individual |
Disadvantages- Partners are jointly liable for the actions of the other partners
- Profits are shared with others - Disagreements can occur - Limited life, withdrawal or death of a partner may result in the business ending - Limitations in becoming a large business - More negotiations • "A major disadvantage of a partnership is unlimited liability. General partners are liable without limit for all debts contracted and errors made by the partnership. For example, if you own only 1 percent of the partnership and the business fails, you will be called upon to pay 1 percent of the bills and the other partners will be assessed their 99 percent. However, if your partners cannot pay, you may be called upon to pay all the debts even if you must sell off all your possessions to do so. This makes partnerships too risky for most situations. The answer would be a different business structure." Citations: http://www.how-to-start-a-business-guide.com/partnership-advantages.html http://www.prosper-consulting.com/wp-content/uploads/2013/01/small-business-owner.jpghttp://blogs.terrapinn.com/total-biopharma/files/2012/03/Partnership-People-Photography-Professional-Occupation-Shaking-Hands-Two-People-Union-Unity-shaking-hands-businessmen.jpg |