A partnership is an association of two or more persons to carry on a business for profit. When the owners of the partnership have unlimited liability they are called general partners. If partners have limited liability they are "limited partners". There may be a silent partner as well - a person who is known to the public as a member of the firm but without authority in management. The reverse of the silent partner is the secret partner - a person who takes part in management but who is not known to the public.
Any business may have the form of the partnership, for example, in such professional fields as medicine, law, accounting, insurance and stockbrokerage. Limited partnerships are a common form of ownership in real estate, oil prospecting, quarrying industries, etc.
Partnerships have more advantages than sole proprietorships if one needs a big capital or diversified management. Like sole proprietorship they are easy to form and often get tax benefits from the government.
Partnerships have certain disadvantages too. One is unlimited liability. It means that each partner is responsible for all debts and is legally responsible for the whole business. Another disadvantage is that partners may disagree with each other.
to carry on a business вести справу
general partner спільний партнер (який несе повну юридичну
відповідальність за справу)
limited partner партнер з обмеженою юридичною відповідальністю
silent partner партнер без права голосу
secret partner секретний партнер (з правом голосу, але невідомий
громадськості як партнер)
stockbrokerage біржове маклерство
real estate нерухомість
oil prospecting видобуток нафти
quarrying industries видобувні промисловості
to be legally responsible бути юридично відповідальним
1. What is the difference between a general partnership and a limited partnership?
2. Is there any difference between a silent partner and a secret partner?
What is this difference?
3. In what professional fields are the partnerships found?
4. In what businesses is the partnership a common form?
5. What are the advantages of a partnership?
6. Discuss the disadvantages of a partnership. Would you prefer partnership or sole proprietorship for business? Give your reasons.
Exercise 1. Select the necessary word in the sentence.
1. Partnership very often receive ... from the government. 1 secret partner
2. Limited partnership is a common form of ownership in... 2 unlimited liability
3. Partnerships have many..., one is that they receive tax
benefits from the government. 3 real estate
4....are the partners with unlimited liability. 4 general partner
5....has the authority in management but he is not
known to public. 5 advantage
6. A secret partner takes part in... 6 profit
7. General partners have... 7 capital
8. One advantage of a partnership is that it offers a
multiple source of... 8 management
9. A partnership can bring much... to the partners. 9 tax benefits
(Two friends Susan and Maurice; are having supper in a restaurant)
Maurice Haven't seen you for a long time. What have you been busy with?
Susan I've been pretty busy. Do you know my friend Nora? I went into business with
Maurice Really? How is it going on?
Susan Fine, thanks. We get along very well, and the shop is attracting more and more
Maurice It sounds well. How many partners are there in your business?
Susan There are two of us and I am very pleased about it. I've made a right choice.
Nora's background is in accounting. She is very good at keeping the books. Maurice And you?
Susan You know I always liked talking. I guess I am rather good with customers.
I enjoy selling things.
Maurice Well, it sounds interesting. I believe you don't run a risk in your business.