Advantages of Partnership Business
When two or more persons agreed to form a business and run by them with a view to earning a profit is called partnership business. It consumes multi-benefits like sole proprietorship business. Prof A. Tonne Simon and C.Macgill said that “Since a partnership combines the brains, talents and specialized abilities of more than the man, it is likely to be before running than a sole proprietorship.” The conducting of the partnership is creates some benefits which are as follows:
Easy formation: The formation of the partnership business is very easy. Two or more persons form all partnership business in according to the general rules and regulations.
Distribution of risk: Under the partnership business, all the partners bear the risk equally so that the risk can be minimized. Conditions are applied so that partners will get the profit and loss to take the risk whether the business makes profit or loss.
Efficient administration: The combination of expenses need a skilled person to lead partnership business with a new horizon and thereupon the business is managed efficiently and objectives are full filled easily.
More capital: More partners invest capital to a great extent upon the collection of capital is possible easily. Most of the time, the amount of capital can be increased admitting new partners in business.
Collective decision: One point to refer that “collective decision it much better than single decision”. Besides any decision made by a partner with receiving from all partners’ advice is fruitful to strengthens and unlikeness that decision.”
Collective interest: Every partner work firmly for achieving business objectives. It is happened due to the collective interest of partners in business.
Economy: This type of business reduces the wasting time and delivers economy to handle it effectively. Partners engage themselves in different sectors. As a result, they try heist and soul to achieve pre-determined goals.
Maintenance of secrecy: Maintenance of secrecy of partnership business is possible due to limited members and all partners belonging to promise to the main secret in all activities.
From the above discussion, it can be said that partnership business has different benefits. If one man has net enough capital, efficiency then he or she can do partnership business. Again in the case of the partnership business, partners have shared the risks of business so that individual is not liable for all the risks of sole proprietorship business.