What are the Plus Points of Partnership Concerns?
“A partnership concern is not expected to make open its profit and loss records as is necessary for a joint stock company. ”
This economic era has led to a massive increase in the number of partnership concerns the world over. Even the biggest of names prefer to work on joint ventures. It is because partnership concerns have more potential for extension and development of business activities. A partnership becomes the concern and responsibility of a number of entrepreneurs or proprietors.The partners can contribute more and administer the activities of the business more methodically. The partners themselves take care of the business so they can stay away from needless wastage.
On the other hand, a sole-trade company is a very tricky affair to manage. All the liability is on one person and he has to be precise and totally foolproof as far as his business decisions are concerned.
In a partnership, different partners have thorough contact with the employees and so they can persuade them for more production. The administration of a partnership is much cheaper to deal with as compared to a Joint Stock Company where specialists are rewarded extremely high remuneration.
There is no legal compulsion to ask for sanction from government before making key changes in the business set up of a partnership. Changes can be made with no trouble depending upon the business prospects.
A partnership concern is not expected to make open its profit and loss records as is necessary for a joint stock company. The partners can keep the business secrets to themselves. Every partner has a right to contribute in the organization of the business. All the vital decisions are taken on the approval of all the partners.
If a majority decision is imposed on all the partners, the affected partners can also get the business disbanded. The partnership can be dissolved on a number of grounds like bankruptcy, insanity, demise of a partner etc.
If the partnership is at will, any partner can get the firm suspended by giving a notice to other partners. No red tape is required at the time of dissolution of a partnership.
Various kinds of costs that are involved in business also get minimized in a partnership because the partners take responsibilities of different components of the company and work in complete coordination with each other.
Author - DeeKay
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