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