Question

What types of partnership do you know? Give examples. What are the advantages and disadvantages of a partnership?

Answer 1

Відповідь:

There are the following types of partnerships: general partnership (limited liability company), limited liability company and command partnership (mixed).

The share of partnerships in a market economy is small, but they have a number of advantages over sole proprietorship:

greater opportunities to expand production as a result of the merger of capital (persons);

better access to credit resources (banks trust partnerships more than sole proprietorships);

improving the process of production management and own economy (depending on the specializations of the participants to perform certain management functions);

maintaining a simple and preferential tax mechanism.

reducing the risk of bankruptcy.

However, they have downsides:

the need for coordination between decision-makers complicates the management process;

the need for responsibility of individuals for wrong decisions, from which the partnership is not insured;

when a participant leaves the partnership, his contribution (share) cannot be put on the open market, so other participants or third parties are obliged to redeem it.

Пояснення: