Partnerships

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Partnerships

Advantages

  • More owners means more ideas, and more people to share the work.
  • More owners also means more capital (money) can be put into the business.

Disadvantages

  • Each partner is legally responsible for what all the other partners do.
  • Like sole traders, most partnerships are unincorporated and have unlimited liability. However some partnerships can have a limited liability.
  • More owners means more disagreements. You're not the only boss. If the partners disagree about which direction the business should go in and how much time to put in, it could become unpleasant.

Evaluation

Partnerships are not that common - but you get a lot of them in jobs like accountancy, solicitors and doctors.Partners have an equal say in making decisions and an equal share of the profits - unless they have an agreement called a deed of partnership that says different.

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