Partnership can be defined as an agreement where two or more persons agree to share the profits of business done by them. Given below are some of the advantages which a partnership has over sole proprietorship and company –
1. Unlike sole proprietorship, in partnership there is more than 1 owner, which implies that starting capital is brought by more than 1 person which is a great advantage when you are first starting a business.
2. In partnership the risk is shared by all the partners equally and therefore one does not has to take that much stress as he or she would have taken if it was a sole proprietorship.
3. A partnership has the advantage of polling of many talents of all the partners which make doing business easy as each partner can do that work in which he or she has more knowledge than others.
4. The borrowing capacity of the business is increased due to more people as they will have more assets on which they can borrow from banks or financial institutions.
5. Apart from financial advantages partnership has emotional advantage also because during tough times your partners will be of great help which is not possible if you are doing business alone.