Article: Advantages and Disadvantages of being in a Partnership

The topic: Discuss the benefits and drawbacks of being in a partnership. What is needed to make them work? What weaknesses can cause a failure within the partnership? Remember to have key terms defined, issues outlined and clearly defined points of view for each side. A partnership is a legal business structure, which is owned and operated by two to twenty people with the aim of making a profit. Partnerships have a variety of advantages …

…and disadvantages to being in a partnership. The sharing of skills, liability, access to capital and profit sharing are the main advantages. Dishonesty, failure to agree and the impact of unlimited liability are the major disadvantages of being in a partnership. Written agreements, avoiding partnerships with family and friends and financial openness and knowledge go a long way to make a successful partnership. A partnership agreement strengthens a good partnership and empowers a weak one.