Describe the advantages of carrying on business as a partnership as opposed to a limited liability company
ANSWER
Advantages of Partnership
• Specialization: creates room for specialization particularly the professional firms.
• Sharing of losses: this reduces the amount borne a single partner.
• Shared management: partners participate in the decision making process and in the management of the firms business.
• Flexibility: can change the nature of business with the consent of all partners.
• Easy to form: formation of partnership is not subject to legal formalities.