Required Readings

Question 1

Advantages of partnership over sole proprietor

Answer 1

• sharing burden of ownership
• opportunity to specialise and cover wide range of services
• Ability to raise capital where this is beyond capacity of single individual

Question 2

Disadvantages of partnership over sole proprietor

Answer 2

• risks of sharing ownership with unsuitable individual

- limits placed on individual decisions

Question 3

Advantages of partnership over limited company

Answer 3

• ease of setting up the business
• degree of flexibility concerning how the business operates
• degree of flexibility concerning restructuring and dissolution fo the business
• freedom from administrative burdens imposed by the law