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1) What is one disadvantage of a sole proprietorship?
2) What other alternative might you have?
Reminders
• News Article Analysis due FRIDAY!
10.7- Forms of Partnerships
• Partnership- a business co-owned by two or more people who agree on how profits, responsibilities, and losses will be divided.
• General partnership- partners share responsibility and each is liable for all debts and losses
• Limited partnership- one person is not involved in the day to day running of the business and is only liable for the funds they provide
• Limited liability partnership- all partners are limited partners and not responsible for debts and other liabilities of other partners.
Advantages
• Easy to open and close• Few Regulations- all that is needed is a legal
agreement spelling out their rights and responsibilities
• Access to resources- having partners means you have more money for investing
• Joint decision making- better decisions usually come from groups
• Specialization- each partner brings specific skills to the business
Disadvantages
• Unlimited liability- you are personally responsible for the debts and losses of the business
• Potential for conflict- partners do not always agree
• Limited life- the business only works with the partners
Independent Practice
• Business Plan
Homework
• News Article Analysis due FRIDAY!
Exit Ticket
• 1) What is one benefit of a partnership?• 2) What do you think is the biggest
disadvantage?
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