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Partnership

Partnership. Steven Tyler, Kirsten Tiroly, Ryan Schlaepfer, Adam Schechter. What is a Partnership?. A partnership is is a business organization owned by two or more persons who agree on a specific division of responsibilities and profits. Different Types of Partnerships:

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Partnership

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  1. Partnership Steven Tyler, Kirsten Tiroly, Ryan Schlaepfer, Adam Schechter

  2. What is a Partnership? A partnership is is a business organization owned by two or more persons who agree on a specific division of responsibilities and profits. Different Types of Partnerships: • General Partnership- The most common partnership, all partners share equally in the responsibility and liability. • Limited Partnership- Only one partner is required to be a general partner. One partner has unlimited personal liability for the firms actions. • Limited Liability Partnership (LLP)- A partnership where all partners are limited partners. This functions like a general partnership, except that all partners have limited personal liability in certain situations, such as a partners mistake.

  3. Pros • Forming a partnership is as easy as a handshake and is often the way they are made. Ex: John and Bob agree to partner together *handshake* • The skills and judgement of both partners are combined, which create better ideas and better business plans. Ex: If John wants to remodel the store to entice people to come in, Bob might not agree with this because the company might not have the money to pay for it all and they don’t want to go into debt. • Financial strength increases Ex: More capital is combined from each proprietor, which increases the strength of the company

  4. Cons • The partners are liable for anything and can be sued Ex:If you sell coffee at 180 degrees and someone spills it on their lap, you can be sued because the coffee is too hot • Authority is divided among partners Ex: If John wants to remodel, but Bob doesn’t, their will most likely be a feud because each side wants something different and this is caused by the division of authority • The business is a separate entity so it is taxed along with your income. Ex: The government can tax Bobs income from the business and then tax the business’ earnings on top of it. This means the business is losing money as well as Bob.

  5. Examples Apple Steve Jobs and Steve Wozniak became partners in 1976 to sell computers. Wozniak dealt with constructed the computers, while Jobs dealt with selling the product and growing the business. Apple became one of the biggest computer business during Job’s and Wozniak’s partnership. Steve Jobs and Steve Wozniak became partners in 1976 to sell computers. Wozniak dealt with making the computers, while Jobs dealt with selling the product and growing the business. octer and Gamble Procter and Gamble William Procter and James Gamble put up $3,596.47 to start a partnership in 1837. William Procter sold candles while Gamble sold soap. Procter and Gamble became the biggest soap industry of its time.

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