Partnerships: Advantages and Disadvantages
Advantages
Control of the business can be divided, with each partner specialising in certain aspects of it.Allows greater time off for holidays than is possible for sole traders
The business has a good chance of surviving if a partner dies
More capital can be invested in the business
Any business losses are divided equally between the partners
Disadvantages
Like sole traders, partners have unlimited liabilityIf the partners have a disagreement, the business could break up
Partnerships are generally small scale and therefore it is difficult to expand the business
A dishonest partner could cause serious financial trouble for the other partner(s) in the business
2: Types of Business Organisations
To the Starting Point
To the Pivot Point