Partnerships



Partnerships

Agreements between two or more people to carry on a business togethe for profit. Groups must be chosen carefully.

Deed of partnership should be made: agreement on issues such as voting rights, distribution of profits, management.

Mostly common in law and accounting.

Advantages

  • Specialization in different areas
  • Shared decision making
  • Additional capital, more finance
  • Losses shared
  • Greater privacy and fewer legal formalities
  • Can cover for each other

Disadvantages

  • Profits shared
  • Bound by one man’s decision
  • Cannot raise capital from selling shares
  • No continuity
  • Loss of decision making, slower and no independence





Rating 3.00 out of 5


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