partnerships

why do partnerships have unlimited liability protectiion

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I'm not quite sure what you mean here, but will have a go at giving you an answer ......Partnerships have unlimited liability, just because that is one of the features of that type of business organisation. They tend to be small, and - in law - there is no difference between the owner and the business ..... meaning that if there are debts then it is the partner who is liable for them, even if he has to sell his house to pay them....... However these days you can set up a particular type of partnership, a limited liability one, where - as the name suggests - all partners have limited liability. Now that sounds better, not as scary to go into! But the downside is that i's more complicated and expensive to set up and run - eg have to file annual accounts with registrar of companies,
veronicapatrick
18 September 2012
I'd be happy to talk to you more about partnerships or other aspects of Business Studies - let me know if you 'd like to have a private session.
veronicapatrick
18 September 2012
thanks :)
cole
19 September 2012
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