Do Now

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?