Commentary

14.3 Greater flexibility in separating ownership and management

BUSINESSES vol 4(2) start-up, sale and purchase
| Commentary

14.3 Greater flexibility in separating ownership and management

| Commentary

14.3 Greater flexibility in separating ownership and management

A sole trader by definition combines ownership of the business and management of it. Although he may, and usually will, employ staff to help him in the business, ultimately the responsibility for running the business rests on him alone.

The same is usually true of a general partnership. In most trading partnerships, it is assumed that all of the partners will not only contribute capital to the business but be involved in its management. Indeed, the Partnership Act 1890 provides that each partner is allowed to participate in the management of the partnership

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