PartnershipPartnership DeedA written document establishing the business relationship between members of a partnership.Limited partnerA member of a partnership who has unlimited liability. Such partners invest money and have a share of the profit, but play no role in running the company. Partnership When two or more people own a business together with the goal of making a profit. Dormant partner A member of a partnership who invests money in the business but plays no role in its management.What is a partnership?A partnership exists when two or more people jointly own a business with the objective to profit from it. Most partners have unlimited liability, so if the business fails they can lose all their personal assets. A maximum of 20 General partnerships are permitted. Each partner is a partial owner of the business and has the right to participate in its management. Dormant partners of limited partners may invest in the business but not take part in its management. Why form a partnership? To finance expansion of individual businesses. The own resources of a sole proprietorship will be limited. To obtain capital for a business. To get someone to share the work and responsibility of running a business. To add new skills to the company. Partnership Deed This is a very important document and is the contract that establishes the terms of the relationship between the partners.Advantages of working as a partnerMore start-up capitalShared costsShared decision makingWider range of expertiseMore ideas.Disadvantages of working as a partnerUnlimited liabilityYou have to share the profitsLimited capitalThe shares of a partner can ruin the companyNo continuity/stabilityDifficult to get money backActivities1. Unlimited liability represents a greater risk for partners than for sole traders because if the business fails, the partners could lose all of their personal assets, not just the money invested in the business, even if the problem was not with them. If someone owes money to the business, the partnership can be sued or just one partner can be sued. If that partner were to pay the debt, he or she would have to get the other partner to pay his or her share of the money owed. The reason there is a legal limit on the number of partners in a partnership is because if there are too many partners it gets out of hand and it becomes difficult to keep track. See separate sheet4. We do not believe that this statement is entirely true at all because we