Describe the advantage and the disadvantage shared by both sole proprietorships and partnerships.

Answer: Proprietorship can be defined as single ownership of business or property, whereas the partnership is the ownership of two or more people over the business.

Explanation:

The advantage of the sole proprietorship is that the owner has the right to enter and exit the market easily. The owner has personal ownership over the property thus he/she cam retain the information. The owner has a freedom for paying the taxes.

The advantages of the partnership is that the management skills of the property or activity will improve. The sources of financing will increase.

The disadvantage of sole proprietorship is financial liability, limited management skills, limited financial benefits.

The disadvantages of the partnership are increased liabilities, potential conflicts, and uncertain terms of partnership.