IndexPartnershipWeaknessesThere are two types of limited liability companies: StrengthsWeaknessesThe main distinctions/differences between financial and management accountingFinancial accountingManagement accountingDifferencesPartnershipPartnership is a type of business organization which associates from two to twenty people. The main reason to start this type of business is to earn profit. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay Strengths Capital. If there are more than one owners, all the partners invest in the company. When the investment increases, the profit also increases. Easy to establish. There are limited external rules and regulations for starting the business. Therefore, the startup cost is very low. He can make the desired decision. To make decisions, two heads are better than one. Flexibility. When the number of people is small, the rate of problems occurring is low. Shared responsibility. The responsibility of the venture can be shared between the partners. The advantage is that the responsibility for managing the business will be shared between the partners. Weak Points Unlimited liabilities. When the company makes money, loses money, or makes money, all partners must assume this risk. This means that all parties must assume the responsibility and financial risks of the company. Disagreement between partners. When you do the business obviously disagreements arise between the partners. Most disagreements occur due to decision making. Profit sharing. Profit that the business profit must share equally between the partners. Therefore, one party will get a low profit. He cannot make his own decisions. Here only one person cannot make all the decisions. Everyone should discuss and will make the decisions. It has no legal personality. The company cannot act as a legal entity in relation to a limited liability company. The limited liability company is the company with legal personality. These companies can act as legal entities before the law. There are two types of limited liability companies: Limited liability companies Limited liability companies Strengths Limited liabilities. Owners do not have to use their own money to pay off debts. Higher investments. The company can increase its investment by issuing shares. When the investment increases due to that profit the tax benefit will also increase. Taxed on company profits. This means that owners do not have to pay taxes individually. Legal personality. The company can act as a legal person before the law. Long lasting. The death and illness of the owner will not affect the management of business operations. Weaknesses Profit sharing. The annual profit must be shared among shareholders. The accounts are not private. Every year they must publish accounting records to the public. Other paper works. When setting up the company there are many bureaucratic procedures to carry out and these are more complex. High installation costs. When the business starts, the owners have to bear high installation costs. Lack of control. The board of directors will make all decisions relating to company operations. Therefore a shareholder cannot assume control and power of the company. Based on the above strengths and weaknesses, I suggest Mr. Fernando and Mr. Perera to start a limited liability company. Because the limited liability company can raise more funds and also has legal personality. Legal personality, which.