IGCSE, A Level Business Student Forum

19a)
(kn)A partnership is a business owned by two or more people who share responsibility, profits, and decision-making.(app)An advantage of forming a partnership is that partners can bring different skills, ideas, and expertise to the business. For example, one partner may be good at finance while another specialises in marketing, improving overall decision-making.(an)This allows the business to operate more efficiently and solve problems more effectively, leading to better performance and higher profits.

19b)
(kn)A partnership is a business owned by two or more people who share profits and responsibilities.(app)One disadvantage is that profits must be shared among all partners meaning each partner receives a smaller share than a sole trader would.This can also lead to disagreements if partners feel their effort is not equally rewarded.(An)As a result conflicts may arise and slow down decision-making which can reduce efficiency and make the business less competitive.

KN: One advantage of forming a partnership is that partners bring different skills and ideas to the business.
APP: For example, one partner may be good at finance while another focuses on marketing, allowing them to manage the business more effectively.
AN: This combination of skills leads to better decision-making, which can improve business performance. As the business runs more efficiently, profits can increase, helping it to grow faster than a sole trader.

KN: One disadvantage of forming a partnership is that profits have to be shared between the partners.
APP: For example, if a business earns a profit of $100,000, it must be divided among all partners rather than kept by one person.
AN: This means each partner receives a smaller share of the income, which can reduce individual motivation. Over time, disagreements about money or decisions may occur, slowing down business growth and competitiveness.

ADVANTAGES:
{KN} Joining two or more ppl results in higher capital available ready for investment with unique ideas {APP} for example a cereal company aiming for growth can fulfill its goal faster than a sole trader company due to more availability of resources {ANL} therefore leading to better outputs for consumers due to consumer satisfaction, raising profits and demand , which increases the market share and brand recognition.

DISADVANTAGES:
{KN} Due to partnership there is a share of profits and shares btw the partners and no decisions can be made without mutual agreement. {APP} for example once the business grows and starts making profit each partner will get its own unit and no amendments can be done on it without proper consultation of whole. {ANL} Hence this leads to disagreements and rivalry upon partners affecting the growth and profit of buisness compared to a sole trader reducing motivation leading to downfall of business.