The document discusses different types of partnerships, including general partnerships, limited partnerships, and how to make a partnership work successfully. A general partnership has at least one general partner who has unlimited personal liability for managing the business. A limited partnership has both general and limited partners, where limited partners have limited liability. Key advantages of partnerships include easy establishment and pooling of capital and skills, while disadvantages include unlimited liability and potential conflicts. Communication, shared responsibilities, and honesty are important for partnerships to be successful.

1. AIM: The students will be able to explain a partnership and different types of partnerships. Do Now: What are 2 advantages and 2 disadvantages of a sole proprietorship?

2. Partnership An association of two or more people who co-own a business for the purpose of making a profit. Always wise to create a partnership agreement. Best partnerships are built on trust and respect.

3. General Partner A participant in a partnership who has unlimited personal liability and takes full responsibility for managing the business.

4. Advantages of Partnership Easy to establish Complementary skills of partners Division of profits Larger pool of capital Ability to attract limited partners

5. Disadvantages of the Partnership Unlimited liability of at least one partner Capital accumulation Difficulty in disposing of partnership interest Lack of continuity Potential for personality and authority conflicts Partners bound by law of agency

6. Liability Features of the Basic Forms of Ownership Partnership Claims of Partnership’s Creditors Partnership’s Assets General Partner’s Personal Assets General Partner’s Personal Assets

7. Limited Partnership A partnership composed of at least one general partner and one or more limited partners. General partner in this partnership is treated exactly as in a general partnership. Limited partner has limited liability and is treated as an investor in the business.

8. Making a Partnership Work Share business Responsibilities. Put things in writing Be honest about how the business is doing.