Explanation:
PARTNER SHIP:
WHEN TWO OR MORE PEOPLE ARE IN BUSINESS TOGETHER IT IS CALLED A PARTNERSHIP. A PARTNER ACTING ALONE IN THE NAME OF THE BUSINESS BINDS THE OTHER PARTNERS.
ADVANTAGES OF PARTNERSHIP:
◇ TWO HEADS OR MORE ARE BETTER THAN ONE.
◇ YOUR BUSINESS IS EASY TO ESTABLISH AND START- UP COSTS ARE LOW.
◇ MORE CAPITAL IS AVAILABLE FOR THE BUSINESS.
◇ YOU'LL HAVE GREATER BORROWING CAPACITY.
◇ HIGH- CALIBRE EMPLOYEES CAN BE MADE PARTNERS.
◇ PARTNERS BUSINESS AFFAIRS ARE PRIVATE.
◇ IT'S EASY TO CHANGE YOUR LEGAL STRUCTURE LATER IF CIRCUMSTANCES CHANGE.
DISADVANTAGES OF PARTNERSHIP:
◇ THE LIABILITY OF THE PARTNERS FOR THE DEBTS OF THE BUSINESS IS UNLIMITED.
◇ THERE IS A RISK OF DISAGREEMENTS AND FRICTION AMONG PARTNERS AND MANAGEMENT.
◇ EACH PARTNER IS AN AGENT OF THE PARTNERSHIP AND IS LIABLE FOR ACTIONS BY OTHER PARTNERS.
◇ IF PARTNERS JOIN OR LEAVE, YOU WILL PROBABLY HAVE TO VALUE ALL THE PARTNERSHIP ASSETS AND THIS CAN BE COSTLY.
HOPE IT HELP....❣❣❣
