ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Specialization. If there is more than one general partner, it is possible for multiple people with diverse skill sets to run a business, which can enhance its overall performance. In general, this may mean that there is more expertise within the business.

Detailed explanation-2: -Corporations offer the advantage of limited financial liability for the owners. This means that the owners of the corporation limit their liability to the investment made in the corporation. The corporation is a separate legal entity that has an indefinite life.

Detailed explanation-3: -One of the advantages of having a business partner is sharing the labor. Having a partner may not only make you more productive, but it may afford you the ease and flexibility to pursue more business opportunities. It might even eliminate the downside of opportunity costs.

Detailed explanation-4: -The benefits of being a limited company over partnership include flexible taxation and limited liability protections for company owners. Partnerships, on the other hand, are very easy to establish and don’t require as many formalities as limited companies.