4.2 Partnership —— a business owned and operated by two or more person.

Partnerships are generally formed by contract. Like sole traders, partnerships are not separate legal entities from their owners. Therefore, partners are jointly and severally liable for any losses that the business might make. In another word, each partner is personally liable for all the partnership's debts (accounting firms and legal firms).

To overcome the high risk involved in the partnership arrangement, LLP has been created in some countries.

Partnerships must maintain financial records and produce financial accounts. However, there is no legal requirement to make these account publicly available.

Disadvantages of being a partnership

? high risk

? slower decision making due to the need for consensus between partners

? one partner leaves, the partnership is automatically dissolved and another agreement is required

FA中，前70%的內(nèi)容，我們主要的會(huì)計(jì)核算對(duì)象是個(gè)體戶。但“個(gè)體戶”的概念在后面的課程中不會(huì)再出現(xiàn)了，即， ACCA課程中，絕大部分的會(huì)計(jì)核算對(duì)象是有限責(zé)任制的公司。

合伙人的會(huì)計(jì)核算已從大綱中刪除。

4.3 Limited liability companies —— a business owned by many people and operated by many (though not necessarily the same) people.

A LLC is owned by shareholder/members. Shareholders may be individuals or other companies. A LLC is legally separated from its owners. The members do not have personal liability for the business's debts. Therefore, we say that the members' liabilities are limited to the amount they've invested in the business.

Advantages of being a limited liability company

? less risky than sole trader or partnership

? easier to raise finance

? continues to exist regardless of the identity of its owners

? tax advantages (tax rate on companies is lower than for individuals)

? relatively easy to transfer shares

Disadvantages of being a limited liability company

? publish annual financial reports

? financial reports must be audited

? must comply with legal and accounting requirements

? share issues are regulated by law

? separation of ownership and management