Partnership – The options for start-up and small businesses – Edexcel – GCSE Business Revision – Edexcel

In a partnership, the owners agree a set of rules. These are outlined in a document called a deed of partnership. As an example, this document may specify how profits are allocated, what percentage of the business each person owns, their roles and responsibilities, and the percentage of any business debts that each person would have to pay. The owners in a partnership pay income tax on their earnings.