Partnerships

A partnership in which all partners assume full personal liability for debts of the firm

• limited partnership
• trading partnership
• non-trading partnership
• general partnership

Partners who are only responsible up to the extent of their investment

• limited partnership
• trading partnership
• non-trading partnership
• special partnership

May be known to the public, but takes no part in active management

• general partner
• secret partner
• silent partner

Association of two or more people to co-own a business for profit.

• corporation
• partnership
• sole proprietorship

Company owned by one person

• partnership
• sole proprietorship
• corporation

When any partner ceases to be associated in the ordinary operation of the business

• joint partnership
• dissolution
• general partnership
• limited partnership

A partnership in which two or more people or firms combine their resources to complete one complex project.

• joint venture
• silent partner
• nominal partner
• secret partner

How is a general partnership organized?

• Every partner shares equally in both responsibility and liability
• The doctors, lawyers, or accountants who form a general partnership hire others to run the partnership
• No partner is responsible for the debts of the partnership beyond his or her investment
• Only one partner is responsible for the debts of the partnership

What is a major advantage of a business that is a partnership rather than a sole proprietorship?

• The responsibility for the business is shared
• The business is easy to set up
• The partners are not responsible for business debts
• The business is easy to sell

Which of the following is a disadvantage of sole proprietorships:

• Limited capital
• Control 
• Privacy
• Tax liability