Partnerships in Business

What is the minimum number of individuals required to form a partnership?

• 2

• 5

• 1

• 10

Which document outlines the distribution of profits and control in a partnership?

• Business License

• Articles of Incorporation

• Deed of Partnership

• Shareholder Agreement

One advantage of a partnership over a sole trader is the potential for:

• More holidays

• More finance

• Less responsibility

• Fewer regulations

How can partners in a business benefit from specialization?

• By increasing innovation

• By reducing costs

• By limiting liability

• By avoiding taxes

How does having industry contacts benefit a partnership?

• By avoiding taxes

• By increasing liability

• By accessing new markets

• By reducing costs

What is a potential disadvantage of having unlimited liability in a partnership?

• Increased profits

• Risk to personal assets

• More control

• Less paperwork

In a partnership, what can shared decision-making potentially lead to?

• Increased profits

• Faster growth

• Conflicts

• More holidays

What is a common issue that can arise from shared profits in a partnership?

• Less innovation

• More holidays

• Reduced personal income

• Increased workload

What does the 'P' in the PLUMS framework stand for?

• Partnership

• Profit distribution

• Public relations

• Personal assets

Why is limited liability not applicable when moving from a sole trader to a partnership?

• Partnerships have limited liability

• Sole traders have limited liability

• Both have unlimited liability

• Both are incorporated