Advantages of a Partnership:

 Easy formation of business.

 Two heads or more are better than one.
 Wider pool of abilities, experiences, knowledge, skills, resources and contacts.
 Decision making process of the management.
 There is an increased ability to raise funds when there is more than one owner.
 Generally, partnerships receive less government regulation than corporations do.
Disadvantages of a Partnership:
 Limited life
 Unlimited liability
 All partners may be held liable for the actions of one partner – mutual agency.
 Consensual – an acceptance of a new partner or a transfer of one partner’s interest to
another must be agreed to by all the partners.
 The decision-making power lies upon every partner.