ECONOMICS
COMPETITION AND MARKET STRUCTURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The responsibility for the business is shared
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The business is easy to set up
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The partners are not responsible for business debts
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The business is easy to sell
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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: -Compared to operating on your own as a sole trader, by working in a business partnership you can benefit from companionship and mutual support. Starting and managing a business alone can feel stressful and daunting, particularly if you’ve not done it before. In a partnership, you’re in it together.
Detailed explanation-3: -Partnership liability is major risk This means that you have unlimited, personal liability for all of the businesses debts, including the acts of employees. In addition, in a general partnership, you also have unlimited, personal liability for the acts of all of the other owners.
Detailed explanation-4: -Shared expertise and knowledge. Gaining a business partner usually means gaining access to their expertise, experience and distinctive competencies. More resources available. Decision-making support. Additional business opportunities. Expand your network and audience. 06-Feb-2023