Various Advantages and Disadvantages of Partnership are discussed here. So let us check it out some of the advantages and disadvantages one by one.
Some Advantages of Partnership are:
- Partnership allows two or more people to come together and share their knowledge to administer or to run a mutual business together.
- More profit can be made with partnership.
- New and innovative ideas are shared during partnership to run business.
- Responsibilites of the business is shared between partners and hence quality work is achieved.
- Partnership is easy to establish.
- More an more employees are attracted if they are given incentives to join as a partner to grow business.
- Use of specialized skills of all the partners to grow business
- More capital is available to run a business.
Some Disadvantages of Partnership are:
- Sometimes disputes between partners is observed during sharing of ideas, thaughts or profits.
- All partners are equally responsible for the debts of the entire firm or the business.
- Some times loss in business is observed if one the partner is retired, die or bankrupt.
- To run a business mutual understanding between partners is must.