Advantages & Disadvantages of Partnership

Advantages of Partnership

1. The death or retirement of a partner may not end the business.
2. There are better and quality decisions by the partners.
3. There is a spread of risks of loss among the partners.
4. It is easy to establish when compared with limited companies.
5. Capital can easily be raised from financial institutions.
6. The business is regulated by the partnership act and the deed of partnership.

Disadvantages of Partnership 

1. Disagreement among partners may affect the business.
2. There is no pride of ownership.
3. Death, insanity, incapacitation, or retirement of active partners may lead to the dissolution of the partnership business.
4. The action of one partner binds on all others in a business transaction.
5. Profits are shared among partners.
6. There is a statutory limit as to the number of people needed to conduct the business.
7. Some partners have unlimited liability.
8. Slow decisions may affect the business as partners have to be consulted before decisions are taken.