Partnerships :: Business and Management Studies

coalitions championship of coalitionA written document that sets out the cable affinity betweenmembers of a followership.Limited PartnerA member of a coalition who has un confine liability. Such partnersinvest money and have a look at of the profit, but play no part in course the firm.PartnershipWhere two or more people cause a billet together with a view to makinga profit.dormancy partnerA member of a partnership who invests money in the firm but plays nopart in its running.What is a partnership?A partnership exists when two or more people own a bloodline togetherwith a view to making a profit.Most partners have unlimited liability, therefore if the businessfails they can nod off all their personal wealth.A maximum of 20 partners is allowed in popular partnership.Each partner is a part owner in the business and has the right to takepart in running it.Sleeping partners of limited partners may invest in the business buttake no part in its running.Why form a partnership?To finance expansion of a doctor traders business. A sole traders ownresources will be limited. To obtain uppercase for a businessTo get someone to share the work and righteousness of running abusinessTo add new skills to the business.Deed of PartnershipThis is a very important document and is the contract that sets outthe terms of the relationship between the partners.Benefits of working as partnersMore start up capitalShared costsShared decision makingWider unravel of skillsMore ideas.Draw mainstays of working as partnersUnlimited liabilityHave to share profitsLimited capitalOne partners actions can ruin the businessNo continuity / stabilityHard to get money backActivities1. Unlimited liability is more of a risk to partners than it is to sole traders because if the business fails, the partners could lose all of their personal wealth, not just the money invested in the business, even if the problem was not to do with them. If someone was owed money by the business, the pa rtnership can be sued or just one partner could be sued. If that partners had to pay the debt, he or she would have to get the other(a) partner to pay their share of the money owed.2. The reason that there is a legal limit on the number of partners in a partnership is because if there are to many partners it gets out of hand, and it becomes hard to keep track.3. chit-chat separate sheet4. We dont believe this statement to be very true at all because, we