Benefits and Drawbacks of Partnership
As a vibrant business and transportation hub in Asia, business participants all over the world continuously rush in to set up business in Hong Kong. Statistics reveal that in the year 2018-19, 1,261,002 companies were registered for doing business in Hong Kong whereas the total number of sole proprietorships and partnerships registered was 256,7491.
Among the three types of business vehicles aforementioned, no doubt companies and partnership are most commonly adopted by local business operators. The business mode of partnership exhibits a higher degree of flexibility and privacy than companies. However, since partnership formation bases on general principles of contract, such contract often encounters unexpected event that disrupts its continuance whereas a company enjoys the benefit of perpetual succession unaffected by the change of its ownership. In your own original writing of about 1,200 words, present a comparative essay of partnerships and companies. You may refer to the following reference materials:
