There some strengths of partnerships. · Partnerships are

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are different types of ownership structures of a business. Like,

Sole Proprietorship business


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Limited Company

Corporation (Organizations that
established for profit)

Co-operative (Organizations that
established to carry out a charitable, educational, religious, literary or
scientific purpose)


are some strengths of partnerships.

Partnerships are easy to start than
other business structures. Because partnerships can start and continue under
minimum number of rules and conditions.

Someone who is ready to start a
partnership it should be include 2 minimum number of peoples and at least 20
maximum number of peoples according to the 2007 companies act number 07.

Another strength is partnerships can
collect more capital than sole proprietorship business.

Different peoples have different kind of
skills about business field. Hence we can appropriate their different special
skills to improve partnership.

Not only that there are many
responsibilities belongs to partnerships. That responsibilities are dividing
between owners. It is an important strength in a partnerships.

When come a problem within a business
then owners can discuss about that problem with all members of partnership and
take more correct and more suitable decisions than sole person decisions.

Partnership business are no need to
register. In a one side it is a strengths but in other side it is a weakness.


is the weaknesses of partnerships.

There are so many unlimited
responsibilities in partnerships. That responsibilities are dividing between
owners. Hence it is a dangerous weakness for their business. Because
partnerships have only at least 20 number of maximum owners. Then one person
should be get lots of responsibilities.

Partnership will have big profit in one
month but that profit will dividing between partners of the business.

Partnerships haven’t continuous

Not only that partnerships haven’t legal
personality. Hence when there is a legal case partners should face to the low
with their names.

Another weakness is, inside a
partnership there may be so many troubles between partners hence it affect to
the partnership existence.



Limited Companies


Limited company is a business
organization which has limited responsibilities and legal personality. There
are two types of limited companies.

1.      Private
limited companies – This can be join minimum 1 to maximum 50   shareholders.

2.      Public
limited companies – This can be join minimum 2 to maximum unlimited shareholders.






of Limited Companies.


Limited companies can collect more
capital than the partnerships business.

Not only that limited companies don’t
have unlimited responsibilities like partnerships. Due to the unlimited
liability partners in partnerships are liable to repay loans even with their
private personal properties. But Limited company partners liable only up to
their capital amount.  

Limited companies are need to be
registered. When there is a legal case company partners can face it to company

Limited companies have continuous
existence and legal personality.



Weaknesses of Limited


Limited companies are not easy to start
like partnerships.

There is a more complex rules for handle
the business.

Limited company has more expensive set
up cost. It is a weakness of the limited company.



There are different kind of strengths
and weaknesses in both limited companies and partnerships.  According to my recommendation I suggest to establish
Limited Company structure to Fernando and Perera for their new business.
Because it is more legalized and structured than the partnerships. Not only
have that Limited companies had more protection than partnerships. 



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