Today’s Schedule – 10/3

• Turn in Entrepreneur Bios• PPT: Partnerships• Activity: Negotiating a Partnership• Homework:– Read 8.3 & 10.3

Types of Partnerships

• General: Equally shared responsibilities & liabilities• Limited (LP): One general partner who

has unlimited liability for the firm–Rest of partners only contribute money

(do not manage business)

Types of Partnerships

• Limited Liability (LLP): All partners are limited–Functions like a general

partnership–All partners are limited from

liability of mistake made by another partner

Advantages of Partnerships

• Easy to start-up–Articles of partnership: legal doc.

defining rights and responsibilities• Subject to little government regulation• Shared decision making–Allows for specialization

Advantages of Partnerships

• Capital–Multiple partners = more assets

(money/valuables)–Competitive wages = attract talent

• Not subject to special taxes–Partners pay taxes on their income only

Disadvantages of Partnerships

• Unless a LLP, at least one partner has unlimited liability• Effected by actions of other partners• Conflict among partners