The Basics
The minimum number of owners required to legally call a business a partnership.
Two
This advantage refers to each partner contributing their own personal skills to help the business grow.
Specialization
This disadvantage occurs because different personalities are working together
Potential for Conflict
This is the name of the legal document that all partners must sign to start the business.
Partnership contract
In a general partnership, all partners enjoy an equal amount of this.
Equal decision making authority
Unlike general partners, limited partners rarely have an active role in these.
Bussiness decisions
By consulting with each other, partners can ensure that these are "minimized."
Mistakes
This term describes the fact that a business's life depends on the partners' ability to work together.
Lack of longevity
True or False: In a partnership, all partners are required to contribute the exact same amount of money
False
This is the term for when personal property is at risk to pay for the business’s debts
Unlimited liability
A limited partner's liability is limited to this specific amount.
The amount of money they invest
This advantage helps a business "keep afloat" because the burden is not on just one person.
Shared business losses
Each partner is responsible for paying business debts even if they have to use this.
Their personal property
True or False: Starting a partnership is described as having the same "ease of start up" as a sole proprietorship.
True
What is at risk for a general partner if the business cannot pay its debts?
Personal property
Because their liability is limited, these people cannot take a limited partner's personal property.
Creditors
It is easier for a partnership to get one of these because more people mean more collateral.
Loan
Conflicts in a partnership are specifically described as arising from this among partners.
Personality conflicts
Besides profits and responsibilities, the Partnership Contract must outline the distribution of these two financial outcomes.
Profits and losses
How does decision-making authority differ between a General Partner and a Limited Partner?
General partners have equal authority. Limited partners rarely have an active role.
This Spanish term was provided in the notes as an equivalent for a Limited Partnership.
Sociedad de responsabilidad limitada
According to the notes, why does a partnership have more "possibilities for a loan" than a sole proprietorship?
More people have more collateral
Lack of Longevity" means the life of the business depends specifically on this.
the ability of the partners to continue to work together after some time.