Characteristics of partnerships
Two or more individuals agree to share equally in both responsibility and liability.
What is General Partnership?
Two individuals come together with different expertises come together to make the business more successful.
What is specialization?
Business owners are personally responsible for all of the debts of the business/company.
What is unlimited liability?
An app used to listen to music. It was founded by Daniel Ek and Martin Lorentzon
What is Spotify?
Uniform state law adopted by most states to establish rules for partnerships.
What is Uniform Partnership Act (UPA)?
Two people can take more money out of the bank, than one person.
What is inexpensive start-up costs?
As compared to businesses with multiple owners, partnerships only have so much capital they can use to start a business.
What is limited capital?
An app used to give navigational directions anywhere. It was co-founded by Lars and Jans Rasmussen.
What is Google Maps?
Work habits, goals, management styles, ethics, and general business philosophies.
What is Potential & Easy Conflicts/Disagreements?
Partnerships have the ability to make all of their decisions on their own, without having to consult a board, or anyone else except the partners.
What is shared decision making?
Arises when personal interests or relationships may affect professional duties, causing potential bias in decision making.
What is Conflict of Interests?
They produce many well-known hygiene products. They are co-founded by William Proctor and James Gamble.
What is Proctor & Gamble?
Profits, income, and losses are passed directly to partners/owners without being taxed.
What is Pass-Through Entity?
Easier to borrow funds, expand the business, or attract new employees because the partnership has more valuables, as compared to a sole proprietorship.
What is a larger pool of assets?
Profits and losses are passed through to the partners as specified in the partnership agreement.
What is Profit Sharing?
They are a well-known ice cream brand. They are co-founded by Ben Cohen and Jerry Greenfield.
What is Ben & Jerry's?
Act in the best interest of their partnership, key to protecting partners and the business itself.
What is Fiduciary Duty?
Partnerships as a business do not owe the government any of their profits, the partners pay taxes through their income individually.
What is lack of taxation?
Profits and losses are passed through to the partners as specified in the partnership agreement.
What is Profit Sharing?
They are known for their complex advancement in the technology industry. They were co-founded by Paul Allen and Bill Gates.
What is Microsoft?