• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Analysis of Business Ownership - Partnerships and Soletraders

Extracts from this document...


Partnership A legal contract entered by two or more people who run a business together and shares a fixed proportion of profits and losses. What?s a partnership? A partnership is a relatively simple and flexible way for two or more people to own and run a business together. There are three types of partnership: 'ordinary' partnerships, limited partnerships and limited liability partnerships. Ordinary Partnerships An 'ordinary' partnership has no legal existence distinct from the partners themselves. If one of the partners resigns, dies or goes bankrupt, the partnership must be dissolved - although the business can still continue. Limited Liability Partnerships (LLPs) LLPs must have at least two designated members - the law places extra responsibilities on them. ...read more.


Responsibilities If the partnership has debts, the partners are jointly liable for any amounts owed and so are equally responsible for paying off the whole debt. If a partner leaves the partnership, the remaining partners may be liable for the entire debt of the partnership. Therefore, partners do not enjoy any protection if the business fails. Features in common The profits and gains of the partnership are shared among the partners, unless the partnership agreement states otherwise Each partner is personally responsible for paying tax on their share of the profits and gains, and for their National Insurance contributions. The partnership must keep records showing business income and expenses. A partner can be an individual or another business, eg a limited company or another partnership. ...read more.


You want to ensure that you submit this Personal Tax Return, and make the appropriate payment of income tax on time. Keeping organised books. Liability As a sole trader, you are personally responsible for any debts run up by your business. This means your home or other assets may be at risk if your business runs into trouble. Disadvantages & Advantages The main disadvantage is that you, as the owner of the business, are solely liable for any consequences of business failure or any other liability for example injuring a customer or property damage. The advantages of being a sole trader are immense not lease because the owner has full control over the business for daily operations as well as how large they wish to grow it. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Structures, Objectives & External Influences section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Structures, Objectives & External Influences essays

  1. Marked by a teacher

    ASDA's Ownership

    4 star(s)

    But at least one partner (a non sleeping partner) has unlimited liability for debts. If the debts are not paid, they loose all personal possessions e.g. their home. * Paying the running and start-up costs are easier to pay, as they have all put in money into the business.

  2. The Business Environment Coursework. Describe the type of business, purpose and ownership of ...

    record profits and gave out huge bonus's to staff even though the rest of the country were struggling financially. * Bankers were greedy and their massive bonus's helped to push house prices up especially in and around London. They were also short sighted when they were planning investments and looked to see what would get them a return quickly.

  1. Btec National Business Level 3 Year 1 - Exploring Business Activity

    Huge increases in energy prices. There have been considerable increases in energy prices in this country. The effects on these businesses are shown in the following. * 70-80% average gas price increases for the chemical industry between 2004 and 2006.

  2. Explain the purpose of keeping accurate financial records.

    If there is any changes then there should be notes applied. Other accounting concepts: Money measurement All items are expressed in common denominator of money, only by using money can items be added together to give profit and loss or balance sheet.

  1. external influences on a business

    for banking; insurance; etc. * it allows for the recall of goods, which are faulty and possibly dangerous. This legislation affects Morrisons because now they cannot have misleading advertising, falsely accepting payment without intending to supply the goods, dual pricing, etc.

  2. Investigating Business. Tesco PLC. I will be describing the aims and objectives of ...

    The four P?s in marketing Activities (Product, Price, Place, Promotion) all contribute to the success of Tesco?s as they each play a role. Product is important as it is what Tesco?s specialize in and that it is selling food products and other retail products, price is just as important as

  1. Comparing Examples of Business Ownership and Objectives.

    They may decide to employ other people but they are the only owner. A sole trader has unlimited liability Partnerships - A partnership is where two or more people share the ownership of a business and so any decisions must be jointly made.

  2. Applied Business. Investigating a business Preston Manor High School

    Advanced technology is being developed and it has grown into a necessity in society. Preston manor is providing the latest modern technology, such as electronic registration by swipe cards, smart boards (virtual learning) etc), to compete with their competitors, Copland and Alperton and maintain high standards.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work