stock with which company or person enters into business; the total sum of shareholders' contributions in a joint-stock company; accumulated wealth especially as used in further production.
I am confident that I have a sufficiently comprehensive understanding to enable me to move on. | I am sufficiently confident in my understanding to enable me to move on, but I am aware that I need to revisit the material later. | I found this difficult to understand and need to look over it again before moving on. | |
You should be able to: | |||
1 Describe in general terms what a business is. | |||
2 Demonstrate an appreciation of the concept of capital. |
Assets | Liabilities | ||
---|---|---|---|
Fixtures and fittings | 5,000 | Bank overdraft | 15,000 |
Stocks | 1,000 | Suppliers | 7,000 |
Van | 2,000 | Gas and electricity | 8,000 |
Flat | 50,000 | HMRC | 10,000 |
Rent | 10,000 | ||
Building society | 40,000 | ||
Total: | £58,000 | Total: | £90,000 |
Partnership is the relationship which subsists between persons carrying on a business in common with a view of profit.
24. Rules as to interests and duties of partners subject to special agreement The interests of partners in the partnership property and their rights and duties in relation to the partnership shall be determined, subject to any agreement express or implied between the partners, by the following rules: (1) All the partners are entitled to share equally in the capital and profits of the business, and must contribute equally towards the losses whether of capital or otherwise sustained by the firm. (2) The firm must indemnify every partner in respect of payments made and personal liabilities incurred by him- (a) In the ordinary and proper conduct of the business of the firm; or (b) In or about anything necessarily done for the preservation of the business or property of the firm. (3) A partner making, for the purpose of the partnership, any actual payment or advance beyond the amount of capital which he has agreed to subscribe, is entitled to interest at the rate of five per cent per annum from the date of the payment or advance. (4) A partner is not entitled, before the ascertainment of profits, to interest on the capital subscribed by him. (5) Every partner may take part in the management of the partnership business. (6) No partner shall be entitled to remuneration for acting in the partnership business. (7) No person may be introduced as a partner without the consent of all existing partners. (8) Any difference arising as to ordinary matters connected with the partnership business may be decided by a majority of the partners, but no change may be made in the nature of the partnership business without the consent of all existing partners. (9) The partnership books are to be kept at the place of business of the partnership (or the principal place, if there is more than one), and every partner may, when he thinks fit, have access to and inspect and copy any of them.
Every partner in a firm is liable jointly with the other partners … for all debts and obligations of the firm incurred while he is a partner; …
I am confident that I have a sufficiently comprehensive understanding to enable me to move on. | I am sufficiently confident in my understanding to enable me to move on, but I am aware that I need to revisit the material later. | I found this difficult to understand and need to look over it again before moving on. | |
You should be able to: | |||
1 Identify the main types of business medium. | |||
2 Demonstrate an understanding of the key characteristics of businesses run as sole traders. | |||
3 Demonstrate an understanding of the key characteristics of businesses run in partnership. | |||
4 Identify in broad terms where the risks of business failure lie. | |||
5 Determine what are the assets and liabilities of a business using numeracy skills (Activities 5, 8 and 9). |