BUISENESS MANAGEMENT
BUSINESS STRUCTURE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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two major advantages of partnership
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minimal set up cost
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partnership agreement
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more flexible, more resources than sole trader
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small risk
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Explanation:
Detailed explanation-1: -Advantages. Partnerships can raise more finance than sole traders. Banks are more likely to lend money to an organisation that has many partners than to a sole trader. Different partners can bring different skills to the business.
Detailed explanation-2: -Partnerships may enjoy the advantage of having more access to operating capital. While the sole proprietor may need to rely on financing, such as bank loans, to start and sustain the operation, partners may be able to pool their resources to come up with needed funds.
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