Advantages And Disadvantages of Partnership

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:

1. Partnership allows two  or more  people to come together and share their knowledge to administer or to run a mutual business together.
2. More profit can be made with partnership.
3. New and innovative ideas are shared during partnership to run business.
4. Responsibilites of the business is shared between partners and hence quality work is achieved.
5. Partnership is easy to establish.
6. More an more employees are attracted if they are given incentives to join as a partner to grow business.
7. Use of specialized skills of all the partners to grow business
8. More capital is available to run a business.

Some Disadvantages of Partnership are:

1. Sometimes disputes between partners is observed during sharing of ideas, thaughts or profits.
2. All partners are equally responsible for the debts of the entire firm or the business.
3. Some times  loss in business is observed if one the partner is retired, die or bankrupt.
4. To run a business mutual understanding between partners is must.