What is the primary advantage of forming a partnership?
Practice Questions
1 question
Q1
What is the primary advantage of forming a partnership?
Limited liability for all partners
Ease of raising capital
Complete control for one partner
No need for formal agreements
One of the primary advantages of partnerships is the ease of raising capital through the combined resources of the partners.
Questions & Step-by-step Solutions
1 item
Q
Q: What is the primary advantage of forming a partnership?
Solution: One of the primary advantages of partnerships is the ease of raising capital through the combined resources of the partners.
Steps: 5
Step 1: Understand what a partnership is. A partnership is a business structure where two or more people work together.
Step 2: Recognize that each partner can bring their own money, skills, and resources to the business.
Step 3: Realize that when partners combine their resources, they can gather more money than one person alone.
Step 4: Acknowledge that having more capital (money) can help the business grow and succeed.
Step 5: Conclude that the primary advantage of forming a partnership is the ability to raise more capital through the combined efforts of the partners.
