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Advantages and disadvantages

A general partnership is easy to start. But it involves more interdependence and less flexibility for partners.

Advantages

  • No start-up capital required
  • Easy to establish
  • Simple organization (depending on the number of partners)

Disadvantages

  • Liability: partners assume unlimited, joint and several liability
  • Interdependence of partners
  • Not much flexibility for partners (e.g. non-competition clauses)