In this kind of business formation, two or more than two individuals come together to form a partnership and start a business by using their resources and they share profit and losses for that partnership business. The management is another aspect, which is also shared by the partners in Partnership Company. It means that a partnership business will have multiple owners, who have invested something in hat business, and they have made an agreement to run the company with certain rules and regulations. There are various benefits of the partnership like it is an easy business company to form because it has less formal requirements. The accounting process for the company will be simple and there would be less legal obligations to deal with. The other benefit of such business is that burden is shared between the parties. The more partners’ means more thought process in decision making along with more resources to run the business. However, the disadvantage of such business is that company’s partners may have to deal with unlimited liability. Moreover, when there are various partners, then it is more likely that conflict will arise, as partners do have differences in their approach (Korchak, 2017). Apple Inc. is one of the famous examples of a business partnership.

References of Partnership of Three Common Formations of the Companies

Korchak, Johnathan. 2017. Advantages and disadvantages of a partnership business. Accessed October 28, 2018. https://www.informdirect.co.uk/business-management/partnership-business-advantages-and-disadvantages/.

Rogers, Karen. 2018. Types of Business Formations. Accessed October 28, 2018. https://smallbusiness.chron.com/types-business-formations-74118.html.

The New York Times. 2007. Advantages and Disadvantages of Sole Proprietorships. Accessed October 28, 2018. https://archive.nytimes.com/www.nytimes.com/allbusiness/AB4113314_primary.html?mcubz=0.