Advantage and disadvantage of partnership
Advantage of partnership 1 . Ease and low cost of formation The legal requirements are limited of registering the of the business and purchasing whatever licenses that are needed 2. Availability of capital and credit. Partners can pool their funds so that their business has more capital than would be available to a sole proprietorship. This additional capital, coupled with general partners Unlimited liability can form the basis for a good credit rating and suppliers may often be more willing to extend credit to such a partnership than to an individual owner. It is thus possible to expand business more easily. Moreover, new partner may easily be admitted to cope with new experience. 3. Retention off profits and sharing losses. All profits and losses are shared among the partners. 4 . Personal interest. General partners are very much concerned with the operation of the firm. 5. Combined business skills and knowledge. Partners often have