Partnership

Lester Stoffels
Mind Map by Lester Stoffels, updated more than 1 year ago
Lester Stoffels
Created by Lester Stoffels about 4 years ago
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Partnership
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Resource summary

Partnership
1 Disadvantages
1.1 It takes longer to make decisions

Annotations:

  • because fellow partners need to be consulted
1.2 Unlimited liability

Annotations:

  • can result in personal assets of partners being at risk
1.3 No continuity
1.4 Partners bind their fellow partners through their actions
1.5 Dishonesty of one partner to further the interest may make all parties guilty
2 Advantages
2.1 Easier to raise capital

Annotations:

  • since more people contribute than with the sole proprietorship
2.2 No formal legal procedure required
2.3 More owners to share responsibilties
2.4 Partners may contribute a skill, ability or asset
2.5 More skills and abilities result in greater energy
2.6 Easier to get loans

Annotations:

  • because more than one person will be held liable to repay them
3 Characteristics
3.1 A minimum of 2 partners

Annotations:

  • may enter into a written or oral agreement
3.2 Has no name requirement
3.3 Is not a legal person
3.4 Liability of partners is unlimited

Annotations:

  •  and their personal assets may be attached by creditors
3.5 Lacks continuity

Annotations:

  • and ends when partner dies, retires or a new partner joins the business.
3.6 No legal formation procedure

Annotations:

  • and partner simply needs to obtain trading licence.
3.7 Not a legal entity
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