1.6 You are a small business adviser. A new client, Arnold Tapwood, has come to you for advice. Mr Tapwood explains that he is the sole proprietor of a small building business.

One of his friends, Simon, who is a carpenter, has suggested that he and Arnold should join forces in a partnership. Arnold is not sure about the extra legal responsibilities which would be involved in becoming a partnership, and he asks you to explain in outline the legal formalities which would be required.