Partnership Accounting
Define a partnership business
A partnership is a business that has 2 to 20 owners who all work together with the main aim of making profits and also who shares these profits/losses
What are 2 advantages of a partnership business?
More capital can be raised with additional partners or partners can help bring extra skills or responsibility is shared
What are 2 disadvantages of a partnership?
Partners have unlimited liability in most cases (at least 1 partner) or capital is still limited in most regards or difficult to transfer partnerships