Advantages of a partnership
1. It is relatively easy to form but considerable amount of time should be invested in developing the partnership agreement.
2. It is easier to raise capital compared to a sole proprietorship as there are more than one investor.
3. Employees may be motivated and attracted to the business by the inventive to become a partner
Disadvantages of a partnership
1. Partners are jointly responsible for all the obligations of the business.
2. Partners must make decision together therefore disputes or conflicts may occur. It may eventually lead to dissolving the partnership.