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What Are The Advantages Of Business Partnership?

5 Answers

Hassan Raza Profile
Hassan Raza answered
It is very easy to establish the business as partnership. Jus like sole trader ship no special legal formalities are required in order to establish a business as partnership, even the registration of the firm is not compulsory. The consent of the partners is sufficient to set up the business. In sole trader ship a single person is responsible to bear all the losses of the business, while in partnership all the partners share the losses suffered by the firm. Partnership is in better position to raise more capital and to expand business, because in partnership capital is collected by the joint efforts of all the partners. While in case of sole trader ship capital of the business depends upon the savings and borrowing capacity of the individual.

In general partnership the liability of each partner is not limited to the business. Hence partnership enjoys better credit standing in the eyes of creditors as compare to sole trader ship due to large number of owners. In sole trader ship single person is responsible to manage all the affairs of the business. Hence it is difficult for the proprietor to manage individually all the affairs of the business. In partnership work is divided among the partners according to their interest and experience. Therefore the partners may perform their duties for which they are suitable. It will ensure efficiency and high profits.
Anonymous Profile
Anonymous answered
ADVANTAGE OF PARTNERSHIP BUSINESS
  The partnership business is easy to format and organized. The partner enters into a partnership agreement and start business. The partnership enjoys a better credit rating in the eyes of creditors. As the liability of each partner in the organization is unlimited, the financial institution can safely advance loan to the firms. Partnership can bring more capital of the business by the joint efforts of the partners. The partnership is normally in strong position to raise capital and expand the business. The profits of a registered firm, after payment of super tax, are divided among the partners. They pay tax to the government on their shares to profit. The partnership can also be legally dissolved without much difficult by mutual consent of the partners or in accordance with a contract by the partners.
jamila khan Profile
jamila khan answered
PARTNERSHIP BUSINESS
The partnership business is the relationship between two to fifty persons who agree to run a common business with the view to earn the profit. The partnership act 1932 of Pakistan clearly mention that in banking business the partner must be between 2 to 10 & in limited partnership the no of member are 2 to 50 are required. All partner share profit & loss according to the partnership agreement. For forming the partnership requires the partnership deed on which all partner must signature agree upon it.

ADVANTAGE OF PARTNERSHIP BUSINESS
The partnership business is easy to format and organized. The partner enters into a partnership agreement and start business. The partnership enjoys a better credit rating in the eyes of creditors. As the liability of each partner in the organization is unlimited, the financial institution can safely advance loan to the firms. Partnership can bring more capital of the business by the joint efforts of the partners. The partnership is normally in strong position to raise capital and expand the business. The profits of a registered firm, after payment of super tax, are divided among the partners. They pay tax to the government on their shares to profit. The partnership can also be legally dissolved without much difficult by mutual consent of the partners or in accordance with a contract by the partners.
Anonymous Profile
Anonymous answered
The partnership is like sole proprietorship can be easy organized there is no legal formalities involved in the establishment of partnership business the partners enter into a partnership agreement and start business

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