These exist when two or more people start a business withou forming a comapny. They also have unlimited liability.
+ Additional skills; a new partner may have abilities that the sole trader does not possess. This can help strengthen the business.
+ More capital; a number of people together can inject more finance into the business than one person alone. May make expansion easier as well as more skills
+ Shared strain; new partner will share the worry of the running of the business, as well as taking on a share of the workload. Should reduce stress and allow holidays to be taken.
- Sharing profit; financial benefits will have to be divided up between the partners according to the partnership agreement made on formation. Can lead to disagreements about 'fair' distribution of workload & profits.
- Loss of control; decision making must be shared.
- Unlimited liability; more worrying to have UL for your partners mistakes.
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