What is the primary advantage of forming a partnership?
Practice Questions
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
Questions & Step-by-Step Solutions
What is the primary advantage of forming a partnership?
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.
