19 Explain one advantage and one disadvantage of forming a partnership.

Ch 2 Business structure
Naveen fatima
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Re: 19 Explain one advantage and one disadvantage of forming a partnership.

Post by Naveen fatima »

Advantage
[KN] One advantage of a partnership is that there are more people to share the work and responsibilities.
[APP]For example, each partner can focus on different areas like marketing, finance, or operations.
[AN] This helps the business run more smoothly, reduces stress on one person, and can lead to better decision-making because partners bring in new ideas.
•Disadvantage
[KN] One disadvantage of a partnership is that profits have to be shared between partners.
[APP] For instance, even if one partner works harder than the others, they still only get an agreed share of the profit.
[AN]This can cause conflicts, reduce motivation for some partners, and may make the owner feel less rewarded compared to running the business alone.
Fatima ibtehaj
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Re: 19 Explain one advantage and one disadvantage of forming a partnership.

Post by Fatima ibtehaj »

[kn]A partnership allows owners to share responsibility and skill whereas Partners share profits and control, which can sometimes lead to disagreements.
[APP]For example, in a small law firm, one partner might be good at client relations while the other is strong in legal research, so they work well together to serve clients better howeverFor instance, two partners running a restaurant might disagree on how to spend profits or what menu items to offer, which can cause conflicts
[AN]haring skills and workload means partners can support each other, make better decisions, and handle more tasks than a sole trader alone. This can improve the business’s chances of success howeverDisagreements over decisions or money can slow down the business and damage relationships. Also, if one partner makes a bad decision, all partners are responsible, which increases risk
Hajra
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Re: 19 Explain one advantage and one disadvantage of forming a partnership.

Post by Hajra »

Advantage
K: In a partnership, owners can share ideas and responsibilities.
App: For example, two doctors opening a clinic can divide work and bring different skills.
An: This means less pressure on one person. better decisions are made business can grow faster.

Disadvantage
K: Profits have to be shared between partners.
App: For example, if the clinic makes good money, it will be divided between both doctors.
An: This reduces how much each partner keeps can cause disagreements may affect motivation or create conflict.
Abdullah Mohsin
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Re: 19 Explain one advantage and one disadvantage of forming a partnership.

Post by Abdullah Mohsin »

[KN] It would lead to unique ideas.
[APP] When there is more than one business owner, the owners can merge their ideas e.g the owners of a coffee shop want to improve product quality as well as develop marketing strategies (BOGOF), merging these two ideas will create a stronger menu and would attract customers.
[AN] This would help increase customer satisfaction, helping increase business sales as well as competitiveness, allowing the business to survive long term in the economy.

[KN] It may lead to conflicts between owners.
[APP] e.g the coffee shop now wants to expand the current premisis or wants to rent out a new building in another area. The owners disagreeing on eachothers ideas will lead to conflicts between them, worstening their relationship.
[AN] This will lead to a delay in decision making, making the business loose on oppertunites and a loss of potential profit.
Haiderabbas
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Re: 19 Explain one advantage and one disadvantage of forming a partnership.

Post by Haiderabbas »

KN: One advantage is that partners can pool capital and skills, making it easier to start and run a business.
APP for e.g... two friends open a cafe. One friend uses his management skills and the other utilises his cooking experience.
AN: This leads to synergy between the two, better decisions and overall higher profit.

KN: One disadvantage is the risk of disagreements and conflicts between the partners.
APPLICATION: e.g: Two partners may disagree on whether to employ more people or to buy more equipment
AN: This leads to a disruption in the chain of command leading to slower choices and decisions and overall lesser competitiveness.
Mahnoor satti
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Re: 19 Explain one advantage and one disadvantage of forming a partnership.

Post by Mahnoor satti »

Advantage
[KN] The advantages of partnership is that there will be more capital invested on the business.
[APP] For instance, a sole trader would only been able to buy one machinery due to tight budget,whereas, in partnership they would be able to afford more machinery due to high budget.
[AN] Thus this will help them to offer more variety of product leading to customer satisfaction resulting in more sales and cutomer base.
[AN+] This will improve the business's brand image making them more competitive.
Disadvantage
[KN] The profit will be shared.
[APP] For instance the business made 100,000 as there are more than one owner, all of the profit would be divided in them so if there are 4 owners each would get 25,000.
[AN] thus this will lead to conflicts between them which will weaken the teamwork and cause trust issues resulting in slow growth of the company.
[AN+] This is lead to customer being dissatisfied hence resluts in bad brand image.
Qasim_Mahmud
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Re: 19 Explain one advantage and one disadvantage of forming a partnership.

Post by Qasim_Mahmud »

Kn:Partnership means that a business is divided between two people who share responsibilities
App:Advantage is that partners can contribute theirs skills example one can focus on finance ,disadvantage is that a disagreement may occur between part
Analysis:It may help the business in growing faster but conflicts between partners can damage the business
Shuraim Arif
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Re: 19 Explain one advantage and one disadvantage of forming a partnership.

Post by Shuraim Arif »

(KN) Losses can be shared between the partners.
(APP) For example, if a clothing partnership business tries to experiment clothes with a new design to check how the market responds, and it turns out to fail, all the capital invested in the cost of production of those clothes would be lost and would therefore be shared by the partners, rather than one person having to bear all the loss, unlike in a sole trader business.
(APP) This would mean that it wouldn't put a lot of pressure on one person financially, meaning it wouldn't become a situation of bankruptcy for the business as long as both partners have ample amount of capital. Furthermore, this would prove to be an opportunity as both partners would get to learn from the mistake and gain experience from it.

(KN) Disagreements may occur between partners.
(APP) For example, partners of a shoes company may have an argument about whether or they should start selling kids' shoes apart from selling adults' shoes.
(AN) This argument may create problems such as less efficiency and diseconomies of scale, which can't be solved and would only worsen with time until the partners find a way to resolve the argument.
LintaHassaan
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Re: 19 Explain one advantage and one disadvantage of forming a partnership.

Post by LintaHassaan »

partnership allows more than one finance resources that can be used to invest in the business operations.For eg 2 people may come up with their money and invest in the startup of a cafe by creating a partnership amongst themseves. This money can be used in automation of machines such as coffee makers.this will lead to a higher productivity as more coffees will be made in less time and thus increases the effeiciency of the business .This will also increase the economies of scale for the business nd help gain regular customers due to a retained coffee taste .Thus more sales will be made .as a result higher revenues will be earned that can be reinvested in further expansion of the business.
However,parntership comes with differences in opinion of the owners.For eg a conflict can be raised as one partner wants to use the finance in marketing while the other partner wants to buy more seating space for the customers to sit on.This leads to a slower decision making process and also leads towards demotivation of the partners as their interests do not align with eachother and the decision can be biased Meanwhile the cafe will lose its position to its competitors as the management is disturbed and due to the delayed decision the operations of the cafe are halted .thus the reputation of the cafe is at risk leading towards a negative word of mouth by the customers impacting the brand image
M huzaifa jillani
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Re: 19 Explain one advantage and one disadvantage of forming a partnership.

Post by M huzaifa jillani »

(Advantage)
(KN)
Partners can share skills and ideas .
(APP)
For example one partner might good at finance while another is good at marketing.
(AN)
This can make the business stronger because decisions are better and work is shared

(Disadvantage)
(KN)
Profits must be shared between partners.
(APP)
For example if the business makes $50,000 each partner gets only a part of it.
(AN)
This means each partner earns less than if they were a sole trader which might reduce motivation.
sarah_naeem
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Re: 19 Explain one advantage and one disadvantage of forming a partnership.

Post by sarah_naeem »

Advantage:-
[KN]: One advantage of forming a partnership is that the partners can share their skills and ideas.
[APP]: For example, in a restaurant each partner can divide their work according to their skills and can also give each other ideas like adding new furniture to the restaurant which would enhance its ambience.
[AN]: Thus, this would lead to work being done quicker/ quicker decision-making and would also help business run smoothly and reduce the stress on one person.
Disadvantage:-
[KN]: One disadvantage of forming partnership is that the profit would have to be shared among the partners.
[APP]: For example, if one partner puts in more effort and works harder he/she would still only get the agreed share of profit.
[AN]: Thus, this would cause conflict among partners and demotivate the person to work and would also make them feel less rewarded as compared to being a sole trader.
Ruqyia Salman
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Re: 19 Explain one advantage and one disadvantage of forming a partnership.

Post by Ruqyia Salman »

[KN] An advantage of a partnership is that more capital can be invested compared to a sole trader.[APP] For example, if two people start a restaurant together, they can pool their savings to afford better equipment and a larger premises.[AN] This increases the chances of business growth and competitiveness, as the firm has more resources to expand and attract customers.
Uqbah hadeed kayani
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Re: 19 Explain one advantage and one disadvantage of forming a partnership.

Post by Uqbah hadeed kayani »

[kn] A partnership is a business owned by two or more people who share profits and responsibilities.
[app] For example, two friends starting a clothing brand can combine their savings and skills.
[an] The advantage is shared workload and capital, which reduces pressure on one person, allows better decision-making, and helps the business grow faster.

[kn] However, partners also share losses and liabilities.
[app] If one partner makes a bad financial choice, both are affected.
[an] This can lead to conflicts, slower decisions, and financial strain if trust or communication breaks down.
AliAzeem
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Re: 19 Explain one advantage and one disadvantage of forming a partnership.

Post by AliAzeem »

[KN]Collective ideas lead to better decision making.
[APP]For example in a clothing store business,when all members collectively give ideas about new designs,it will be easier to manage.
[AN]This will lead to higher efficiency which will save time and cut costs leading to higher profit margins resulting in growth.
Areeba Arshad
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Re: 19 Explain one advantage and one disadvantage of forming a partnership.

Post by Areeba Arshad »

Advantages:
[KN] A partnership allows two or more people to own and manage a business together, combining their skills and resources.
[APP] For example, one partner may have financial expertise while another has strong marketing skills.
[AN] This brings a wider range of ideas and abilities, which helps in making better and more informed decisions and ultimately improves the business’s efficiency and chances of success.

Disadvantages:
[KN] In a partnership, profits are shared among all partners according to their agreed ratio.
[APP] For instance, if two partners earn $100,000, each might receive only $50,000 instead of keeping the full profit like a sole trader.
[AN] This reduces individual financial reward, which can lower personal motivation to work harder, and cause disagreements that slow down decision-making and harm competitiveness.
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