4 Partnership Types | Advantages

This article is for the classification of Types of partnership and advantage and disadvantage of partnership. Before doing that kind of business structure all partners should have knowledge of it. so can run the business as per their suitability. As the main concept of partnership is when more than two people come into one place for doing business with the aim of earning a profit, But if we focus for the duration of business or responsibility, then kind of partnership will change from one category to other.

What are the 4 Types of Partnership

types of partnership

Types of Partnership by Project

General Partnership, This is the Ge renal and common type of partnership. Here the concept is to run the business and earn profit without any specific period or to the completion of the task.
Joint Venture, In this type two persons or companies, come into agreement for the completion of the task. When the task is completed the partnership is dissolved.

Types of Partnership by Liability

Limited Liability Partnership: This type of partnership is not common, however, its concept is now growing in countries. In this kind of partnership, all partners have limited liability. Their personal property will not be entitled for the clearance of firms debts.
Limited Partnership: In such a partnership, there should be at least one general partner and the other may be having limited liability. The General partner should have to pay all the debts in case of loss.

Advantages of Partnership

Multiple creative skilled Mind
Healthy Capital
Easy for creation and Establishment
Borrowing Facility
The large area of Operation
Management
Assignment of the task as per skills
Contribution of Loss
Public Trust
Business Secret
Easy to change nature or type of Business
Simple Dissolution Procedure

As compare to Single proprietorship, a Partnership firm for business is good because of multi-skills personalities, creative mind stock and large Capital in the business.

Disadvantages of Partnership

Limited Capital as compare to Companies
The personal act of Partner effect
Partner’s disputes
No facility of Nomination
Business Secrets and Ideas Threats
Limited duration

Partnership Firm Types Advantages Dis-Advantages