What are the advantages of the partnership system?

The advantages of the partnership system are as follows: 1. Partners' property and capital can be distributed reasonably. 2. Because the partners of the partnership bear the unemployment of the partnership, they can exercise self-discipline and control risks in their business activities. 3. The conditions and procedures for joining the partnership are simple, and the partnership has certain autonomy. 4. It can encourage the partnership to operate normally.

legal ground

Article 2 of the Law of People's Republic of China (PRC) on Partnership Enterprises The term "partnership enterprises" as mentioned in this Law refers to general partnership enterprises and limited partnership enterprises established by natural persons, legal persons and other organizations within the territory of China in accordance with this Law. A general partnership consists of general partners, who are jointly and severally liable for the debts of the partnership. Where this Law has special provisions on the liability form of general partners, such provisions shall prevail. Limited partnership consists of general partner and limited partner. The general partner shall be jointly and severally liable for the debts of the partnership, and the limited partner shall be liable for the debts of the partnership to the extent of the capital contribution subscribed.