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Essay Details:
Essay text:
Partnership - a business owned by two or more people
Advantages:
simple to establish
shared control
tax advantages (partners pay personal tax on their share of profits)
broader skills and resources
Disadvantages:
partners personally liable
transfer of ownership may be difficult
partners may not agree on decisions
Partnership good for low risk businesses.
3. Company - a separate legal entity owned by shareholders
Advantages:
easy to transfer ownership (owners are called shareholders)
easier to raise capital
lower legal liability (shareholders not personally liable for debts of company)
Disadvantages:
unfavourable tax treatment – company itself pays tax...
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