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business - Coggle Diagram
business
advantages
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it’s easy to change your legal structure later if circumstances change you can easily wind up your business
disadvantages
you have unlimited liability for debts as there’s no legal distinction between private and business assets
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advantages
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each partner is ‘jointly and severally’ liable for the partnership’s debts; that is, each partner is liable for their share of the partnership debts as well as being liable for all the debts
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if partners join or leave, you will probably have to value all the partnership assets and this can be costly.
disadvantages
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there is opportunity for income splitting, an advantage of particular importance due to resultant tax savings
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advantages
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increased negotiation opportunities with suppliers in terms of prices because larger businesses can achieve economies of scale
disadvantages
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increased negotiation opportunities with suppliers in terms of prices because larger businesses can achieve economies of scale
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