Advantages and disadvantages of a partnership
Advantages of a Partnership
More money for the business
Partners can put their savings together.
This helps the business grow faster — like buying more taxis in this case.
Shared work
Tasks are divided based on skills.
Gita handles accounts and admin.
Mike focuses on marketing and driving.
If one is busy, sick, or on holiday, the other can manage.
Shared motivation
Both get a share of the profit, so both work hard.
Losses are also shared, not carried by one person.
Disadvantages of a Partnership
No limited liability
If the business fails, partners may have to sell their personal property to pay debts.
No separate legal identity
The partnership ends if one partner dies.
The business and owners are legally the same.
Possible disagreements
Partners may argue on decisions.
Discussing with all partners can slow things down.
Risk from inefficient or dishonest partner
If one partner makes bad decisions or cheats, the other partner also loses money.
Limit on number of partners
Many countries allow only up to 20 partners, so capital and growth are limited.
When Partnerships Are Suitable
When people want to start a business together without complicated legal steps.
When certain professions (like medicine or law) allow only partnerships.
When partners trust each other well — for example, family members.