Partnership

To start a partnership business, what should be the minimum number of partners?

• 2

• 10

• 4

• 20

A partnership has between 2 and 20

• employees
• shareholders
• owners
• customers

Unlimited liability means

• the business is closed down because of too much debt

• the owners' personal possessions can be used to cover the firm's debts

• the bank will refuse to give loans to the business

• the business will struggle to attract investors

It is easier to raise finance in a partnership because

• the partners have more personal wealth than a sole trader
• all the partners will invest a certain amount in the business
• the bank will give a partnership lower interest rates for all loans
• partnerships are the only type of business that can receive grants

Which of the following is an advantage of being in a partnership?

• Ideas and decision making can be shared
• The most senior partner has responsibility for running the business
• Partners can have responsibility for many different areas of the business
• Each partner gets the same share of the profits

In a partnership, all profits are shared between the partners.

• False
• True