Essay about Partnerships As A Form Of Ownership

776 Words Jul 7th, 2015 4 Pages
Our business will be based on partnerships as a form of ownership. We chose that method because many small business begin as partnerships between co-founders. It is a type of business where two or more people share ownership. Each partner contributes to all aspects of the business, including money, property, labor or skill. In return, each partner shares in the profits and losses of the business. It is an association of two or more persons who operate a business as co-owners by voluntary legal agreement.
Partnerships offer a lot advantages. The first advantage of partnership is that partnerships are easy to form. All the partners need to do is register the business name and obtain any necessary licenses. The second advantage of partnership is that having a partner generally means greater financial capability and someone to share in the tasks and decision making if a business. In another words, with more than one owner, the ability to raise funds may be increased, both because two or more partners may be able to contribute more funds and because their borrowing capacity may be greater. The third advantage is that a partnership may benefit from the combination of complementary skills of two or more people. There is a wider pool of knowledge, skills and contacts. For example it is better if one partner has a particular skill such as design, while the other has a knack for financials.
Even if partnerships have many advantages, it also have some disadvantages. A major…

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