Partnership Business

1. Partnership Business

2. Why business often want to grow? • The possibility of higher profit for the owner. • More status and prestige for the owners – higher salaries are paid to managers who control the bigger firms. • Large share of its market – proportion of total market sales it makes is greater.

3. What is meant by Partnership Business? • A business organization in which two or more individuals manage and operate   the business. Both owners are equally and personally liable for the debts from  the business. • Each partner has a right to share in the profits of the partnership. In addition to sharing in the profits, each partner also has a right to participate equally in the management of the partnership. • They have the same goals and are equally responsible for the decisions made on behalf of the business. • Partners may have a partnership agreement, or declaration of partnership and in some jurisdictions such agreements may be registered and available for public inspection.

4. Limited Liability Partnership (LLP) • LLP, or Limited Liability Partnership, is a business partnership where partners' liability in the company is limited to the amount of their investment into the company. • The partners are also not liable for some acts of the other partners in the business. • State laws vary on the formation of LLPs, and many states make it a requirement to purchase liability insurance to cover any possible claims against the LLP. • Many states also limit the formation of an LLP to professionals, such as architects, lawyers, healthcare professionals and accountants.

5. Types Of Partners • Silent partner An owner who takes an active part in the business but may not be known to the public. • General partner They are the partners who share unlimited liability. • Limited Partner They are the partners who have no personal liability beyond their investments in the partnership interests. • Nominal partner An individual who does not own the business but suggests to others by words or deeds • Senior partner A general partner who has been with the partnership a long time and owns a large share of the business • Junior partner An individual who has been with the business a short time and is not expected to assume great responsibility for major decisions

6. Advantages Of Partnership Business. • Sufficient capital. • Expansion of business. • Borrowing facilities. • Combined abilities. • Ease of Organization. • Flexible Management. • New skills and ideas.

7. Disadvantages Of Partnership Business. • Disagreements • Liability • Taxation • Profit Sharing • Limited capital

8. Percentage Of Partnerships, Sole Proprieties And Corporations In Society.

9. What are Partnership agreement? • Partnership agreements are written documents that show the details of the relationship between the business partners. • It should cover all possible business situations that could arise during the partnership's life. • The agreement should spell out the status, responsibilities, and authority of each partner. • In the absence of a written agreement, terms of the Uniform Partnership Act apply. • Each partnership agreement contains clauses specific to the organization and its principals. • The partnership could be an oral agreement, but is generally not done that way.

10. Model Of Partnership Agreement

11. Examples Of Partnerships It was founded by Larry Page and Sergey Brin in 1998. Apple, also started out as a partnership in 1976 by Steve Jobs and Steve Wozniak. Twitter was founded by Jack Dorsey, Noah Glass,Evan Williams and Biz Stone in 2006 July.

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14. Prepared By Sheikh. Amnna Rafiq Presented by Madina Moiz Sheikh Amna Rafiq Marium Rasheed Rumysa Khan Topic distribution Madinah MoizSheikh Amna Rafiq Why business often want to grow? Limited Liability partnership (LLP) What is meant by partnership? Documentation Of Partnership Business Types of Partners Percentage Of Partnerships Marium Rasheed Rumysa Khan Advantages of Disadvantages of Partnership Business Partnership Business