Читать книгу Start & Run a Coffee Bar - Tom Matzen - Страница 59

(a) Unlimited liability. The major disadvantage of a partnership is the unlimited liability. This unlimited liability is much more serious than in a proprietorship because all the partners are individually and collectively liable for all the debts and liabilities of the partnership. Each partner’s personal assets are liable to be seized, if necessary, to pay for outstanding business debts.

(b) Unstable duration of business. Any change in the partnership automatically ends the legal entity. Changes could include the death of a partner or the admission or withdrawal of a partner. In each case, if the business is to continue a new partnership agreement must be written.

(c) Management of difficulties. As mentioned, when more than one owner assumes responsibility for business management, there is a possibility that differences of style, priorities, philosophy, and other factors will arise. If these differences become serious disputes and are unresolved, the partnership may need to be terminated, with all the financial and personal trauma involved. It is difficult for future partners to foresee whether or not personalities and methods of operating will clash.

(d) Relative difficulty in obtaining large sums of capital. This is particularly true of long-term financing when compared to a corporation.

(e) Partnership agreement problems. The larger a partnership becomes, the more complex the written agreement has to be to protect the rights and identify the responsibilities of each partner. This can result in additional administration and legal costs.

(f) Difficulty of disposing of partnership interest. To withdraw capital from the business requires approval from all other partners. This takes time and involves legal and administrative expenses.