5876473
Description
Mind Map by Lester Stoffels, updated more than 1 year ago
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Created by Lester Stoffels
almost 8 years ago
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Partnership
- Disadvantages
- It takes longer to make decisions
Annotations:
- because fellow partners need to be consulted
- Unlimited liability
Annotations:
- can result in personal assets of partners being at risk
- No continuity
- Partners bind their fellow
partners through their actions
- Dishonesty of one partner to further
the interest may make all parties guilty
- It takes longer to make decisions
- Advantages
- Easier to raise capital
Annotations:
- since more people contribute than with the sole proprietorship
- No formal legal
procedure required
- More owners to
share responsibilties
- Partners may contribute
a skill, ability or asset
- More skills and abilities
result in greater energy
- Easier to get loans
Annotations:
- because more than one person will be held liable to repay them
- Easier to raise capital
- Characteristics
- A minimum of 2 partners
Annotations:
- may enter into a written or oral agreement
- Has no name requirement
- Is not a legal person
- Liability of partners is unlimited
Annotations:
- and their personal assets may be attached by creditors
- Lacks continuity
Annotations:
- and ends when partner dies, retires or a new partner joins the business.
- No legal formation procedure
Annotations:
- and partner simply needs to obtain trading licence.
- Not a legal entity
- A minimum of 2 partners
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