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1.. advantage and disadvantages of the partnership and sole proprietorship? just the point no need explanation

1.. advantage and disadvantages of the partnership and sole proprietorship? just the point no need explanation

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Expert Solution

Advantages and Disadvantages of Partnership:

Advantages Disadvantages
More Capital will be available Partners have unlimited liability for the debts of the business
Equally shared responsibility Each partner is an agent of the partnership and is liable for actions by other partners
Share the start-up costs equally Higher chances of Conflicts among Partners
Limited external regulations A partnership has "limited life" meaning that it can be dissolved due to death, insolvency, retirement etc of other partner/partners

Nature of the Partnership will depend on the Partnership agreement   

Partnerships have to be built on TRUST between the partners.

Advantages and Disadvantages of Sole proprietorship:

Advantages Disadvantages
Easy to start, only one owner    Raising money by the owner depends upon the factors of production that the owner can obtain
Sole recipient of all the profits Management is limited to the skills of the owner
Quick Decision making Limited life, if owner dies then business ends
More flexible Unlimited liability, all the losses are the owner's responsibility.

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