The main objective of this essay is to approach some of the advantages and disadvantages of a business partnership. This essay will go on to analysis and would strive to amplify on the following to the growing body of research: it will provide comprehensive definitions of partnership.The business partnership Act 1890 defines a partnership as the relation which subsists between different people carrying on a business in common with a view of profit.According to Alan Griffiths & Stuart Wall they said that "This is a form of business relationship which is usually entered into by individuals who wish to take advantage of the combined capital, managerial skills and experience of two or more people.”
A partnership is a legal business structure, which can be owed by and operated by two to ten individuals with a aim of making some good profit.Partnerships has different type of advantages and disadvantages as business structure.Partnership need written documents of agreement and careful thought as to whom would be allowed to join.When it comes to partnership there is a greater access to skills and capital.The more partners you have in a business mean the more capital.A lot of Business are more likely to get a good loan from bank because there are more people to finance the loan repayment back.Having a good number of partners in a business mean more useful skills because each person will have their own area.
When it comes to partnership the running of the business can be shared if each partner takes an active role (unles one partner is quite or is very limited partnership where they can only contribute but does not actively help in the of any business. Partnership is has different feature such as agreement, two or more persons, lawful business and sharing of profits.
When it comes to lawful business a partnership can be formed for the purpose of carrying on any lawful business. There can be no partnership for engaging in illegal acts like theft and smuggling.A partnership business structure is a good option for every one around the world who are just starting out or who plan on running a small business or big business that will have up to about 20 or less employees involved.
Advantages of Partnership
Capital is a good due to the nature of the business, the partners will put money towards the business with start up the capital. This means that the more partners there...