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Advantages of Partnership Disadvantages or Partnership: Pros and Cons Grid

This document compares the pros and cons of different business structures: partnerships have tax advantages and more funding from multiple partners but also unlimited liability and potential conflicts; sole proprietorships are easy to form but have limited resources and lifetime; corporations have limited liability but more paperwork and pay double taxation, though they can access more investment and hire talented employees.

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Aprilyn Batayo
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31 views1 page

Advantages of Partnership Disadvantages or Partnership: Pros and Cons Grid

This document compares the pros and cons of different business structures: partnerships have tax advantages and more funding from multiple partners but also unlimited liability and potential conflicts; sole proprietorships are easy to form but have limited resources and lifetime; corporations have limited liability but more paperwork and pay double taxation, though they can access more investment and hire talented employees.

Uploaded by

Aprilyn Batayo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Name: Aprilyn T.

Batayo BSA-II

Pros and Cons Grid


Advantages of Partnership Disadvantages or Partnership
Tax advantages Unlimited liability
Low start-up cost Lack of Continuity
More partner, more funds Difficulty of finding partner
Limited Regulation Divided authority
Ease of information Possible conflict among partners
Broader management base Slower decision making
Easier to form and run business Joint Accountability

Advantages of Sole Proprietorship Disadvantages of Sole Proprietorship


Easy Formation Limited resources
Tax advantage Limited life
Prompt decision Unlimited liability
Easy dissolution Scale of business and expertise

Advantages of Corporation Disadvantages of Corporation


Limited liability Extensive paperwork
More money for investment Double taxation
Size Two tax returns
Perpetual life Size
Ease of ownership change Termination difficult
Ease of drawing talented employees Conflict with Stockholder and Board
Separation of ownership or management Initial cost

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