PARTNERSHIP
The partnership is a co-owner of a particular type of business entity. The agreement is documented in the constitution and is known as partnership. These are the unincorporated business firm, explained by the laws as relations among two or more persons. The partners agree to carry on a trade or business together. Ownership is where one owned the company individually. The owner of the company has full responsibility for managing the business.
The partnership has its pros and cons. The advantages of a partnership are many; for instance, some extra hands and ideas that generate among the business owner compared to an individual. There is also an advantage of additional knowledge. There is easy access to finances as partners pull the resources together. In partnership, there is less paperwork as the partners divide the activities among themselves. There are disadvantages of partnership as each partner is exposed to unlimited liability for their actions in the business. In partnership, transferability can be challenging to obtain. The partnership is always unstable due to the fact, if one partner quit the company, then it must be dissolved.
The ownership has a disadvantage of financial risk. The finances needed to set and grow business is always a challenge to the owner as sometimes raising funds is not easy for the owners. The is still stress associated with the sole proprietorship. The business owner had to commit his time. The time commitment is always wanting as the owner of a business, and you have to be there full time. The business owner has advantages also as he is independent. Therefore, the freedom to make a decision which might be crucial to the business without the hustle of consulting back and forth.
Both partnership and ownership business has advantages and disadvantages that must critically be but in consideration while making a decision either to go for partnership or sole proprietorship.