8.2 Partnerships and Franchises

A legal agreement that sets out each partners rights and responsibility in a partnership

Articles of partnerships

Money and other valuables

Assets

A business that pays fees to a parent company

Business franchise

The most common type of partnership is the

General partnership

A business in which all partners share in both responsibility and liability

General partnerships

A business in which all partners are protected from personal liability in certain situations

Limited liability partnerships (LLP)

A business in which one partner has unlimited personal liability for the company's actions

Limited partnership

A major advantage of a franchise is that

The parent company provides guidance on running the business

What major advantage does a partnership have over a sole proprietorship?

The responsibility for the business is shared