Question

why is partnership better than company?

Answer 1

In partnership, each partner has unlimited responsibility and is personlly liable for all the debts of the firm.
On other hand, In a company a shareholder has little burden, limited to the extent of the share capital.
There are some advantages of the partnership which makes it better than company. These advantages are following:-
1.   No share capital required.
2.   Foundation only requires two people.
3.   Largely free drafting of articles of association.
4.   Shareholders can make their own business decisions.
5.   Each Partner is taxed according to his/her profit.
6.   It is easy to form a firm.
7.   No legal steps are necessary to change the size, structure or purpose of the firm.