Advantages;

1. It enjoys greater capital than a sole proprietorship since two or more persons are investing in the business. A partnership can do more in a business because they have more capital to invest and the business will grow faster if they manage it well.
2. The skills, wisdom and expertise of two or more men are combined contributing more efficient management. In this particular business of partnership, all the work of the minds, to know-how’s and experiences are combined to produce the best product possible so that their business will be more successful.
3. There is a division of labor among partners whose work is based on their training and skills. Partners are not overworked unlike the sole proprietor. The jobs are divided in each and everyone that owns a business so that the workload is evenly distributed.
4. Since capital is bigger, a partnership has a greater borrowing capacity than a sole proprietorship.

Disadvantages;

1. A partnership has too many bosses. Because at the owners are more than one or two, there are so many managers who make decisions than can create confusion among employees.
2. A partnership business can easily break-up. Since too many persons are involved in the decision-making process, partnership is prone to quarrels.
3. Liabilities are limited to partners. When the business collapse, all partners are liable corresponding to the amount of money invested in the partnership.