Adam has a business that provides wine tasting for events. He is approached by Beth to provide wine and chocolates for a wine pairing event. Adam does not want to lose the opportunity, so he asks his friend James who makes chocolate to enter into a partnership with him to provide chocolate to Beth$$s event.

James has never been in a partnership before and is very nervous about it$,$ because he has heard that all their private assets and debts are shared. Explain to James how partnerships work, with specific reference to who is liable for partnership debts and who owns which assets.

$(6$ marks$)$