Benefits and Drawback Between Partnership

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The benefits and drawback between partnership & corporation Partnership benefits * Capital - partners will fund the business with start up capital. This means that the more partners there is the more money they can put into the business. This will allow the business with better flexibility and more potential for growth. This also means that there will be more potential profit, which will equally share to the partners. * Flexibility – partnership is flexible because it’s generally easier to form, manage and run. They have less strictly regulation than companies, in terms of the laws and the partners have the only say in the way the business is run so they’re more flexible in terms of management, as long as all the partners agreed on it. * Shared responsibility – partners can share their responsibility of the running the business. This can allow them to make the most of their abilities. Rather than splitting the business task equally, they might as well split the work according to their strength. For example if a partners is good in figures he will deal with the book keeping and account, while the other partners will deal with the other task that they are good at. * Decision making – partners share the decision making and help each other out when they are needed. If more partners mean more brain that can be pick for business ideas and for solving problems. * Profit sharing – partnership is allowed to get their profit share equally the taxation charges them individually so they don’t have to pay a lot of tax therefore they can get more profit. Partnership drawbacks * Disagreement – the most obvious disadvantage of partnership is the disagreement between the partners. People are likely to have different ideas on how the business should run or who should be doing what the best interests of the business are. This can lead to disagreement and
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