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Small Business Management Task 1


The Role of Small Business to the Economy
My Three Businesses
Technology & Small Business
Occupational Health & Safety
Human Resource
Other Submission Requirements

A Partnership Business

A partnership usually involves two or more people agreeing to run a business together. It is possible for a business to have up to twenty partners in it, and these partners may or may not have equal rights, and it is even possible for one partner to not contribute to the actual running of the business. This is known as a silent partner. The partnership is not taxed because it is not a separate entity from the actual partners, who are liable for all debts and losses to the business. For the partnership to be made, a partnership agreement is created. This document outlines the roles of each partner and their rights to the business. Partnerships can also be relatively inexpensive to set up, because there are more people within the business, there can be a wider range of skills and sources of capital availability are greater, decision making is shared and there may also be some tax advantages. Unfortunately, partners may not always agree on certain issues and each partner is liable for the business actions of other partners. Also, profits must be shared and a partner cannot sell there share of the business unless an agreement is made with the rest of the partners.


SBM Task 1 By Luke Cerff