Business Studies

Partnerships are businesses owned by two or more people.

Sharing control in a partnership is not allways an advantage there may be some disputes between partners.

The deed of partnerships outlines the share of profite losses and responsibilities.

The main advantage of a partnership over a sole trader is shared responsibility. This allows for specialisation, where one partner's strengths can complement another's. For example, if a hairdresser were in partnership with someone with a business background, one could concentrate on providing the salon service, and the other on handling the finances.

There is less time pressure on individual partners

The distribution of profits can cause problems. The deed of partnership sets out who should get what, but if one partner feels another is not doing enough, there can be dissatisfaction.