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Task 10.3. Writing: Write the summary to the given text



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Task 10.3. Writing: Write the summary to the given text

The partnership
A person who starts a sole proprietorship may find that it grows and grows. More money must be found to expend the business, and that isn`t easy. Banks want certain guarantees before they make loans, even to old, successful business. One way, then, to expand a business is to add skills and spread out the responsibility by forming a partnership. A partnership is a business organization with two or more owners who share responsibility.
Starting the partnership has few requirements. Depending on the nature of the business, a partnership may need a license. The partners should draw up a partnership agreement, a kind of contract in which they declare certain understandings between them. For instance, they put into writing how they will share the work and profits, how they will end the partnership, and other matters. A written agreement from the start may prevent problems later on.
It spells out the duties of each partner so that each knows exactly that responsibilities are his or her. Each partner can contribute skills, as well as money, to running the business. One advantage of a partnership is that each partner can bring special skills to the business. Another advantage is that, unlike sole proprietorships, partnerships find it easier to acquire money because there are more owners who can contribute to the business. All partners who share in the business have good reasons to work hard for its success. Each shares in the profits according to the partnership agreement. Like the income of the sole proprietorship, the income of the partnership is taxed only once.
Certainly the partnership has disadvantages. Like sole proprietors, partners have unlimited liability for debts. Wrong decisions may cause the business to lose money.
However, even with a partnership agreement, partners may disagree. Those disagreements may become such a problem that the partners no longer can work together. The partnership agreement should provide for adding new partners and for ending the partnership, to avoid problems. The partnership is also legally ended if one partner decides to leave the partnership or dies.
Many partnership agreements provide a way for the remaining partner or partners to buy the share of ownership of a partner who leaves the business or dies. By having a partnership agreement that allows the partners to do this, they can keep the business and continue it as a new one.

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