starter answer the following questions on your whiteboards 1.define sole trader. 2.what is unlimited...
TRANSCRIPT
![Page 1: Starter Answer the following questions on your whiteboards 1.Define sole trader. 2.What is unlimited liability? 3.List 2 advantages of being a sole trader](https://reader036.vdocuments.us/reader036/viewer/2022082710/56649e3b5503460f94b2df2a/html5/thumbnails/1.jpg)
Starter
• Answer the following questions on your whiteboards
1. Define sole trader.2. What is unlimited liability?3. List 2 advantages of being a sole
trader.4. List 2 disadvantages of being a
sole trader.
![Page 2: Starter Answer the following questions on your whiteboards 1.Define sole trader. 2.What is unlimited liability? 3.List 2 advantages of being a sole trader](https://reader036.vdocuments.us/reader036/viewer/2022082710/56649e3b5503460f94b2df2a/html5/thumbnails/2.jpg)
Partnerships
![Page 3: Starter Answer the following questions on your whiteboards 1.Define sole trader. 2.What is unlimited liability? 3.List 2 advantages of being a sole trader](https://reader036.vdocuments.us/reader036/viewer/2022082710/56649e3b5503460f94b2df2a/html5/thumbnails/3.jpg)
Objectives
• To identify the features of a partnership (E)
• To analyse the benefits and drawbacks to a partnership. (C)
• To evaluate why a business would form as a partnership. (A)
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What is a partnership?• A business agreement
between 2-20 people, but could have more staff
• They have unlimited liability
• Examples:-– Vets– Doctors– Solicitors
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How to set up a Partnership?• A Deed Of Partnership needs to
be completed. This shows:- – The money put in– Roles and responsibilities– How the agreement can be
ended
Anything not covered in this agreement is covered by the Partnership Act 1890
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Sleeping Partners• These are people
who have invested money into the company but have no active part in running the business
• They have limited liability
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Advantages Vs Disadvantages
• In pairs come up with the advantages and disadvantages you believe a partnership to have.
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Advantages of Partnerships
• Spreads the risk more than being a sole trader
• New skills can be brought to the business
• More money and resources are brought to the business
• Accounts are kept private
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Disadvantages of Partnerships
• Unlimited liability• Sharing the profits• Less control of the business• Disputes over workload• Partnership has to be reformed if a
partner dies
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Task
• Complete the true or false activity handed out.
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Activity
• In groups you should form your own partnership and each create a deed of partnership detailing the particulars of the business you are creating.
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Video
• Watch the following short video which will talk about the different forms a business can take. You have covered 2 of them, but what are the other ones mentioned?
• Can you make a note of what they are and their advantages and disadvantages?