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[Agency bookkeeping] What are the advantages and disadvantages of a partnership?
First, the advantages of partnership:
1, which can raise capital from many partners, breaks through the limitation of enterprise funds by individual ownership to a certain extent, enhances the credit of enterprises to obtain loans from outside and expands the sources of funds.
2. The risks are scattered among many owners, and the partners share the repayment responsibility, which greatly improves the anti-risk ability of the partnership enterprise compared with the single owner enterprise. Enterprises can expand into risk industries and broaden their development space.
3. Partners are fully responsible for the profits and losses of the enterprise, that is to say, all partners guarantee the enterprise with all their own property, which helps to improve the reputation of the enterprise.
4. The increase in the number of operators or investors has broken through the limitations of personal knowledge, experience and experience. Driven by the same interests, many operators pool their wisdom and give full play to their strengths from different aspects, which is bound to help improve the management level of enterprises.
Second, the shortcomings of the partnership:
1, the legal form is complicated. A partnership is established according to a contract between partners. Whenever the original partner leaves or accepts a new partner, a new partnership must be established, which causes legal complexity. By accepting new partners, the ability to increase funds will be limited.
2. Time lag in decision-making. Since all partners have the right to engage in business activities on behalf of the enterprise, major decisions need the unanimous consent of all partners. Therefore, it is easy to cause delays and mistakes in decision-making.
3. Non-operating partners bear greater risks. All partners are jointly and severally liable for the debts of the enterprise, which makes those partners who cannot control the enterprise face great risks.
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