Partnerships Year 10 GCSE Business Studies Learning Objectives

Partnerships Year 10 GCSE Business Studies

Learning Objectives £ To know how a Partnership is set up (E-D) £ To state two advantages and two disadvantages of setting up in a Partnership (E-D) ££ To apply knowledge of advantages and disadvantages of a Partnership to a business scenario (C-B)

Starter Activity – True or False? (T = 10, F = 5) 1) A Sole Trader is someone who owns their own business. 2) A Sole Trader cannot employ others to work for them. 3) Most Sole Traders can be found in the Secondary (manufacturing) sector.

Starter Activity – True or False? 4) It is hard to raise capital as a Sole Trader. 5) Unlimited Liability is a major disadvantage for being a Sole Trader. 6) Unlimited Liability means you are personally responsible for all the debts of the business.

Starter Activity – True or False? 7) The name of Joe’s business was ‘Clean as a bucket’ 8) You get to discuss any problems and share the decision making. 9) Very few business people in the UK are Sole Traders. 10) It is the hardest form of business ownership to set up.

Starter Activity – True or False? 7) The name of Joe’s business was ‘Clean as a bucket’ 8) You get to discuss any problems and share the decision making. 9) Very few business people in the UK are Sole Traders. 10) It is the hardest form of business ownership to set up.

What is YOUR score?

Answers 1) 2) 3) 4) 5) 6) 7) 8) 9) 10) T F F T T T F F

Today we have TWO special guests… So, what type of Business Ownership do you think we might be looking at today?

Let’s Welcome…

Try to think of as many different FAMOUS Partnerships

What is a Partnership? • 2 -20 people become joint owners of a business that they set up. • Not everyone has an EQUAL share. • Each partner should be a SPECIALIST. • ‘Sleeping partners’ • Partners must trust each other!!!

What sector of industry will you find most Partnerships? • Tertiary sector • Professionals • Veterinary surgeons, solicitors, accountants, dentists and doctors etc.

Forming a Partnership • Most partnerships draw up a … Deed of Partnership • Without it, the law states that each partner is equal regardless of the amount of capital they have put into the business.

Deed of Partnership • Provides information on how the business will operate and who is responsible for what. • The sharing of profits and losses • The amount of capital each partner has contributed to the business – not all the same amounts.

Your Turn! What are the ADVANTAGES/DISADVAN TAGES of setting up as a PARTNERSHIP? ? ?

Advantages of a Partnership • More capital introduced • Each partner will bring ‘specialist’ skills to benefit the business. • Work can be covered if any of the partners are ill or on holiday. • Easy and cheap to set up • Financial information remains private to the partners.

Disadvantages of a Partnership • • • What happens to profit? Decision-making longer – why? Unlimited liability – partners are at risk Partners tend to work long hours Partner leaves, partnership automatically ends – new partnership must be formed to keep business going. • Family partnerships…. ? ?

Plenary