BUSINESS ADMINISTRATION
BUSINESS ECONOMICS
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
The responsibility for the business is shared
|
|
|
The business is easy to set up
|
|
|
The partners are not responsible for business debts
|
|
|
The business is easy to sell
|
Detailed explanation-1: -Consider a partnership if the number of people involved is small (up to about 20) and limited liability is not necessary. Advantages of a partnership include that: two heads (or more) are better than one. your business is easy to establish and start-up costs are low.
Detailed explanation-2: -While partnerships have to pay taxes on profits made, you don’t pay separate taxes for being self-employed as an owner. Partnerships can also be very fruitful due to each partner’s added knowledge, skills, and experience. Lastly, although they are more complicated than sole proprietorships, partnerships are easy.
Detailed explanation-3: -The benefit of a partnership over a sole proprietorship is that you’ll share the responsibilities, resources, and losses. On the other hand, you also split your profits, and you might face disagreements over how to run the business. One way to mitigate conflict is to create a partnership agreement.