Bob and Rob have started a food delivery business together called Grub Galore in their college town. They have not incorporated their business and they run it from Bob's basement and garage. Grub Galore is an example of which form of business ownership?

Question

Business

Gia Goodman

25 September, 01:42

Bob and Rob have started a food delivery business together called Grub Galore in their college town. They have not incorporated their business and they run it from Bob's basement and garage. Grub Galore is an example of which form of business ownership?

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Answers (1)

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Edgar Erickson · Answer 1

Partnership Business

Explanation:

Partnership business is a business enterprise owned, managed and financed by a minimum of two individuals for the purpose of making profit.

Grub Galore is owned by Bob and Rob which makes it a partnership business.

Advantages

1) Profit is shared by partners only.

2) It is financed by more than one person which makes capital more available.

3) Decision making is faster company to limited liability companies

Disadvantages

1) Loss is shared among partners only.

2) Death of one partner might lead to the end of the business.

3) Disagreement between partners might end the business.