BU231 Chapter Notes - Chapter 26: Letterheads, Limited Liability Partnership, Legal Personality
Document Summary
Sole proprietorship an unincorporated business owned by a single individual. Partnerships the relationship between two or more persons carrying on a business with a view to profit. Advantages: can work together and use both partners" expertise and financial resources. Disadvantages: dishonesty/incompetence of one member, time-consuming to make decisions. A formal written partnership agreement is normally drawn up and signed by all partners. If a partner dies or retires or a new partner is admitted, the partnership comes to an end and is replaced by a new relationship. Firm collective reference to the partners in a partnership. Until the creditors of the partnership have been paid, it is impossible to identify and distribute the share of an individual partner. If no assets remain after the creditors have been paid, the partner has no share for personal creditors to seize. Partnership agreement an agreement between persons to create a partnership and setting out the terms of the relationship.
