Partnerships can be cost-effective as each partner specializes in certain aspects of their business.
Partnerships provide moral support and will allow for more creative brainstorming.
your business is easy to establish and start-up costs are low
it’s easy to change your legal structure later if circumstances change.
mgt211 aasignment idea solution
Disadvantages of partnership :
A major disadvantage of a partnership is unlimited liability. General partners are liable without limit for all debts contracted and errors made by the partnership. For example, if you own only 1 percent of the partnership and the business fails, you will be called upon to pay 1 percent of the bills and the other partners will be assessed their 99 percent. However, if your partners cannot pay, you may be called upon to pay all the debts even if you must sell off all your possessions to do so. This makes partnerships too risky for most situations. The answer would be a different business structure.
The partnership may have a limited life; it may end upon the withdrawal or death of a partner.
Mr.Khalil have to join partnership with his friend for the development of his business .