Unformatted text preview: troublesome. Many individuals fear they may lose not only their initial investment but also their personal assets, if those assets are needed to pay partnership creditors. As a result, partnerships often find it difficult to obtain large amounts of investment capital. That is one reason why the largest business enterprises in the United States are corporations, not partnerships. The advantages and disadvantages of the partnership form of business organization are summarized in Illustration H-2. Illustration H-2 Advantages and disadvantages of a partnership Advantages Disadvantages Combining skills and resources of two or more individuals Mutual agency Ease of formation Limited life Freedom from governmental regulations and restrictions Unlimited...
View Full Document
This note was uploaded on 11/08/2011 for the course ACCOUNTING ac 201 taught by Professor - during the Spring '11 term at Montgomery.
- Spring '11