BUSINESS ADMINISTRATION
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following is NOT an advantage of starting a business as a partnership?
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More finance can be raised
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Partners can specialise according to their experience
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The workload is reduced since it is shared amongst partners
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Partners may disagree and fall out with each other
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Explanation:
Detailed explanation-1: -Disadvantages of a partnership include that: the liability of the partners for the debts of the business is unlimited. each partner is ‘jointly and severally’ liable for the partnership’s debts; that is, each partner is liable for their share of the partnership debts as well as being liable for all the debts.
Detailed explanation-2: -Some of the advantages of partnership include the chance to bridge the gap in expertise and knowledge, the potential for more cash, a reduction in costs, more business opportunities, a better work-life balance, moral support, a new perspective, and potential tax benefits.
There is 1 question to complete.