Advantages:

i. Raising of Larger Capital: Since a number of people pool resources together in partnership, larger capital can be raised as compared to sole proprietorship. Thus partnership stands a greater chance of expansion.

ii. Better Decision-Making: Decisions are taken by many and so are likely to be more effective than in the sole proprietorship. This is based on the old adage that "two heads are better than one".

iii. Credit Worthiness: The partnership business is more credit-worthy than the sole-trader because of its large assets contributed by its large number of partners.

iv. Business Management: The owners are themselves the managers and controllers of the business; interest, dedication and responsibility of partners in the business may be higher when compared with sole proprietorship.

v. Business Liquidation: The death of a partner may not collapse the business as in the case of a sole trader. This is because other partners are there to carry out the operations of the business.