2. IDENTIFICATION
Partnership types is an
unincorporated
business that is owned
by two or more peoples
(the partners).
A partnership can
normally have up to
twenty partners.
3. The Advantages of
PARTNERSHIP
[
The owners are self-employed
Owners have full controls over
business and profits
Few legal formalities
4. The Disadvantages of
PARTNERSHIP
U i m t ed l i abi l i t y f or each of t he
n-l i
ow
ner
The par t ner have f ul l r esponsi bi l i t y
f or al l aspect s of t he busi ness
D sagr eem s bet w
i
ent
een par t ner s m
ay
cause di f f i cul t i es w t h t he busi ness
i
The busi ness m not sur vi ve t he l ost
ay
of t he one par t ner
5. Sources of Capital for the
PARTNERSHIP
Personal contributions of partners.
Funds from financial institutions (usually as
loans and overdrafts).
Trade credit.
Retained earnings/Ploughed back profits – These
are profits of the business which are kept back
that can be put into the business where the need
arises. These profits are important sources of
capital because they help the business to reduce
its dependence on sources of capital outside the
business.
Contributions by newly admitted partners – Like
every other partner, partners who newly join the
partnership also make their contributions to the
business