Name__________________ Date due__________date turned in___________
Posted on internet Sunday 03_26_Monday
Econ: Chapter: 8 Section: 2 Date Due: 03_27_ Tuesday Page(s)190
Thru 193 Biography: pg.189 Jerry Yang; Data Bank: 534,535
Graphs Fig.8.1;8.2;8.3;8.4;8.5 Global Connection: pg.203 Skills for
Life:page:194 Fast Fact pg.202 Case study Business and Ethics pg.205
Chapter 8: Business Organizations: Section 2 Partnerships
Objectives: after studying this section you will be able to:
A. Compare and contrast the different types of partnerships
B. Analyze the advantages of partnerships.
C. Analyze the disadvantages of partnerships.
Main idea: Partnerships let individuals pool their resources and share
responsibility for the forming and running of a business.
1. A business organization owned by two or more persons who agree on a
specific division of responsibilities and profits is called
a________________.
2. In the United States what percentage of all businesses account for
partnerships?______ partnerships generate what percent of all
sales?____And what percentage of all income?______
3. How many different types of partnerships are there?___
4. What is the most common type of partnership?____
______. How are
responsibilities and liabilities shared in a general partnership?________
5. When only one partner has unlimited personal liability for the firm's
actions and the other partners only contribute money, and do not actively
manage the business what kind of partnership is this?___________
6. How many limited partners are allowed in a limited
partnerships?___________ how much money can a limited partner
lose__________ and how many general partners must there be?_____
7. Name one advantage of being the general partner in a limited
partnership__________ and one disadvantage?
8. A partnership where all members are limited partners and all partners
are limited from personal liability in certain situations this is a____
_____
___(LLP). All types of businesses are allowed to register as L L
P's. T F
Advantages of Partnerships
9. Partnerships are difficult to establish and are subject to many many
government regulations. T F
10. The legal document that spells out each partner’s rights and
responsibility and outlines how partners will share profits or losses is
called____________.
11. Laws do require a written partnership agreement. TF
12. If partners do not develop articles of partnership do follow the rules
of the Uniform Partnership Act (U P A). T F. Name at least two
requirements required by the UPA.__________ _________
13. The U P A does not allow partners to distribute profits as they wish.
T F. The U P A does require shared management responsibilities. T F
14. One advantage of a partnership is that each partner brings different
strengths and skills to the business. T
F
15. Borrowing money for expansion and operations, adding limited partners
attracting and keeping talented employees are all enhanced features of L L
P's. T
F
16. One big drawback of an LLP is that the business itself must pay taxes.
T
F each partner of an LLP is responsible for their share of taxes based
on the income that they have earned from the LLP. T
F
Disadvantages of Partnerships
17. LLP's have fewer disadvantages than partnerships with general
partners. T
F
18. All partnerships have the potential for conflict. T
F
19. If the business arrangement is not an LLP at least one partner has
unlimited liability. TF
20. The above statement means that one partner has unlimited liability and
can lose everything including personal property. TF
21. Limited partners however can only lose their_________
22. Because one partner's actions can cause all of the general partners to
suffer what must partners choose very carefully?
23. What is one of the main reasons that partnerships dissolve?________
conflicts. What is the best way for partners to communicate_______ and
they must also find ways to resolve________.