Advantages and Disadvantages of a Partnership in Business

994 Words4 Pages
Introduction In this text, I identify the various advantages and disadvantages of a partnership as a form of ownership. Further, I highlight the main funding options for a small business and determine how management accounting can be of use to business executives especially in the areas of budgeting, incremental analysis and product costing. Lastly, in addition to identifying the basic components of the marketing process, I also discuss the role technology and social responsibility play in the marketing function. Partnership as a Form of Ownership: Pros and Cons A partnership according to Burrow and Bosijevac (2011) "is a business that is owned and operated by two or more people who share in the decision making and profitability of the company." There are several pros and cons of this form of business ownership. To begin with, one of the pros of this form of ownership according to Burrow and Bosijevac (2011) has got to do with the pooling of both the skills and knowledge of partners. By bringing together their diverse skills, partners in this case enhance the success of the enterprise. Secondly, a partnership may be able to access more funding than a sole proprietorship. This is more so the case given that in addition to the ability of partners to pool resources, banks are more likely to advance loans to businesses that have more people responsible for the repayment of the same (Burrow and Bosijevac 2011). Lastly, a partnership form of business may continue operating
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