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There are different types of business types where two or more people can
collaborate and start a business with reference to the company ownership as
partnership, limited company, or corporate company. A well-preferred
type of business ownership for two people to start a business is a business partnership.
When entering in to a partnership the related parties enter into an agreement
where the profits and the liabilities are shared between partners. Unlike a
limited company the written or oral agreement is enough to build up a partnership
and it doesn’t have to disclose any corporate information on public records or
get adapted to different reporting and filling requirements according to the
company Act.      

 One of the main advantages of
entering into a partnership is that the capital for the business doesn’t have
to be bared just by one person and the capital will be increasing when two or
more people are investing on the business. The liabilities and profits will be divided
among the partners equally or in some cases it can be limited for some. Not
only the profits but as the burden are also divided among the partners the
pressure does not come on one person’s shoulders  A company with partnership can easily be
managed as they are less strictly regulated companies and the management is
more flexible as long as the partners agree in taking decisions. The
responsibility of running the business is divided among the partners according
to their capabilities which is another strength to the company. Having more
people running a business makes it more effective and synergetic as business
ideas are generated among the partners and decisions can be made strategically
according to the situation.

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 The most common weakness of a
business partnership is the conflicts due to disagreements among the partners
of the company. As the partnership is based on an agreement, it is necessary
for all the partners to agree to the things are being done to the company. As
the liabilities are unlimited in partnership, the partners are liable for
losses which may lead in losing the personal assets which won’t occur in a
limited company. Unlike a limited company if the company reaches an above level
of a certain level of income the partners will have to pay taxations
individually.  Even though the partners
share the profits equally among each other there can be  partners who contributes less for the
development of the company and who has contributed a less amount in the
capital.   

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