Week 4 topic 1 review 150 words apa format

Chad

Liquidating a partnership is defined as “when a general partnership closes its doors for business, it must liquidate the partnership. This is the process of selling the business’s assets, paying outstanding debts and dividing the remaining assets among partners” (legalzoom.com).

Forming a business partnership is “an agreement between two or more individuals to operate a business jointly” (smallbusinessnotes.com). 

Some of the advantages to forming a partnership would be less capital per person, flexibility, shared responsibility and decision making. Having two or more people in partnership with each other you can actually take and share different aspects to running the business which could lead to less stress and less headaches. Also going into a partnership, you should try to find other people with extreme knowledge in certain areas so you increase your chances of greater success. 

Some disadvantages of forming a partnership would include disagreements, liability and taxation. Disagreements to me would be the most obvious just because everyone has their opinions as to which direction the company should go in. I am kind of surprised that liability fell in this category because you actually share the liability with everyone. Taxation is another disadvantage and a big one at that because every owner has to pay the same taxes as a sole owner would have to pay.

If I had to choose, I would probably go with forming a partnership because it would be less start up cost for myself and less burden on my shoulders.