Scale: Heffernans Dental Practice started n 1988 when the owners, the Heffernans, bought out the widow of the previous owner of a dental practice. They originally had planned to purchase an adjacent property to expand the business, but were unable to when it became available due to lack of finance. They did seek another partner, but that fell through. Therefore, given iti s only one premises, It Is a small scale business. Ownership: Heffernans Dental Practice Is a partnership. A partnership Is a way of sharing with others the managerial and financial responsibility for a business.
Legally, a partnership must consist of between 2 and 20 partners. Like sole traders, they usually have unlimited liability – but, they can be limited partnerships as we shall see later. They are mostly appropriate for professional businesses such as doctors, dentists, estate agents and solicitors. A partnership allows people to share capital and skills and expertise. Although all partners are responsible for the business’s debts, one partner Is not responsible for another’s private debts.
On the other hand, If one partner makes a istake and signs a bad contract for the business, the other partners will have to honour the contract. The legal regulations, which govern a partnership, are set out in the 1890 Partnership Act. Advantages of a partnership Responsibilities and decision making are shared. Continuity and support Is possible. Several partners mean the business does not come toa stop If one partner becomes Ill or takes a holiday. Partners may have expertise In different areas and this can mean a better chance of success. More finance is available as all partners can contribute.
Disadvantages of a partnership Profits are shared. The total number of partners allowed limits the size of the business. A friend/ partner does not necessarily make a good business partner. If your partner runs up debts, you are equally responsible. Business level 2 – Unit 1 By learnerazzl 23 Size: Heffernans Dental Practice is a small business in terms of the number of people it would still be viewed as a small business. Scale: Heffernans Dental Practice started iti s only one premises, it is a small scale business. Ownership: Heffernans Dental Practice is a partnership.
A partnership is a way of sharing with others the Although all partners are responsible for the business’s debts, one partner is not responsible for another’s private debts. On the other hand, if one partner makes a the 1890 Partnership Act. Advantages ofa partnership Responsibilities and decision making are shared. Continuity and support is possible. Several partners mean the business does not come toa stop if one partner becomes ill or takes a holiday. Partners may have expertise in different areas and this can mean a better chance of success.
