BUSINESS WHAT IS A PARTNERSHIP? • A legal form of business operation between two or more individuals who share management and profits. • There are several different types of partnerships. The two most common are: - general partnership: the partners manage the company and assume responsibility for the partnership's debts and other obligations. - limited partnerships: has both general and limited partners. The general partners own and operate the business and assume liability for the partnership, while the limited partners serve as investors only; they have no control over the company and are not subject to the same liabilities as the general partners. PARTNERSHIP BUSINESSES Honda Intel Skype HP Warner Bros Pictures Coca-Cola Sony WHAT IS A LIMITED COMPANY? • A limited company is a type of business structure that has been incorporated at Companies House as a legal ‘person’. • Its completely separate from its owners. • It can enter into contracts in its own name and is responsible for its own actions, finances and liabilities. • The owners of a company are protected by ‘limited liability’, which means they are only responsible for business debts up to the value of their investments or what they guarantee to the company. LIMITED COMPANIES WHAT IS FRANCHISE? • A contractual relationship between a licensor (franchisor) and a licensee (franchisee) that allows the business owner to use the licensor's brand and method of doing business to distribute products or services to consumers. FRANCHISE