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List of advantages of the ease of formation

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Question 1: From the list of advantages and disadvantages, pick the two from each list you think are the most important, and explain why.

Advantages of Partnership

  1. Ease of formation
  2. Low start-up costs
  3. Additional sources of investment capital
  4. Possible tax advantages
  5. Limited regulation
  6. Broader management base

Disadvantages of Partnership

  1. Unlimited liability
  2. Divided authority
  3. Difficulty in raising additional capital
  4. Hard to find suitable partners
  5. Possible development of conflict between partners
  6. Partners can legally bind each other without prior approval
  7. Lack of continuity
  8. No name protection

Reference no: EM132583317

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