1. Easy to start – Partnerships firms are one of the easiest business entities to start. In most cases, you can start a partnership firm within a day.
2. More Accountability – Two individuals become partners when they believe in the business that they are planning to start. Hence, when they start a partnership firm, they have a high sense of accountability towards the firm. This results in a dedicated core team heading the business.
3. Ease of raising funds – If we compare a partnership with a sole proprietorship, then the former can raise funds in a much easier manner than the latter. The primary reason being banks and financial institutions view them favorably.
4. Sense of Ownership – Every partner owns and manages the activities of their firm. Their tasks might be varied in nature but people in a partnership firm are united for a common cause. Ownership creates a higher sense of accountability, which paves the way for a diligent workforce.