What are the advantages and disadvantages to a business of being formed as a partnership or sole proprietorship?

Advantages:

1. Simple start-up. Both business forms require a low cost to start thus providing flexible startups
2. Confidentiality. Both business operations are known and supervised by a few individuals thus upholding high level of integrity.
3. Less capital required. Both forms of business take up few costs to operate and start thus does not require numerous capital.
4. Profits in sole proprietorship and partnerships are retained by the business owners.

Disadvantages:

1. In both business forms, the owners are liable for losses or debts.
2. Both partnerships and sole proprietorship face challenges in transferring business ownership
3. Both business structures face unlimited liability due to equity being valued as the same as the owner's resources.