Answer:
The advantages shared by both sole proprietorship and partnerships are;
1. They are both easy to start are readily affordable to establish
2. Both, individual income sole proprietorship and split income partnership can benefit from tax savings
3. The business affairs of the operators of both models are private
4. Both enjoy limited external regulation
The disadvantages shared by both business models are;
1. The sole proprietorship and the partners in a partnerships are liable (unlimited liability) for the debts of the business
2. The business may end with the death or departure of a partner in a partnership or the owner in a sole proprietorship
3. Difficult to change a partner in a partnership or the sole proprietor in a sole proprietorship
Explanation:
A sole proprietorship is an enterprise model whereby the enterprise is entirely run and owned by one person such that legally there is no distinction between the business owner and the business
A partnership is a business arrangement where two or more people (partners) come together to manage the operations of the business such that they share the profits and liabilities of the business.
Partnership businesses are sometimes formed by professionals such as lawyers and doctors.
