What are the advantages and disadvantages of partnership?
Advantages
•Easer and simpler to set up than company
•Informal business structure hence it is not bound by accounting, auditing and accounting reporting standards
•Ability to share knowledge, skills, ability, resources, capital and workload among the partners
Disadvantages
•Unlimited liability for business debts and obligations by all partners**
•Limited life – if one partner dies or withdraws from the business then the partnership must dissolve**
•Mutual agency – each partner is seen as being an agent for the business and so is bound by any partnership contract
**Note that for Limited Liability Partnership (LLP) – there is limited liability for the partners and unlimited life