5.2

What are three disadvantages of a partnership?

-Liability -emotional issues -lack of stability

What are three advantages of forming a partnership?

-easy to start up -more access to knowledge -better decision making

Assets

Economic resources (things of value) owned by a firm.

Why are partnerships better able to raise capital then sole proprietorships?

Introduce new technology, generate jobs, and produce tax revenues for the host countries.

What does a person give up by changing from being a sole proprietor to being a general partner?

They give up keeping all profit and having full control.

Partnership

a business owned by two or more people

articles of partnership

a partnership agreement that spells out each partner's rights and responsibilities

Limited liability partnership

a type of partnership in which all partners are limited liability responsibility for the debts

General Partnership

a type of partnership in which all partners share equally in both responsibility and liability

Business franchise

an arrangement in which a parent company, or franchiser, distributes its products or services through independently owned outlets

limited partnership

partnership in which only one partner is required to be a general partner

Royalties

the share of earnings given by a franchise as payment to the franchiser