I have seen many well-run partnership businesses with potentials for expansion suddenly closing shop or for sale just because the partners have misunderstanding between and among themselves which had affected business operations.
If you think you need a partner or partners to run the business then a partnership form is suitable for your purpose. In a partnership each partner owns a share which is equal to the amount of investment each contributes. One visible disadvantage is that if a partner dies or leave for one reason or another the business is dissolved.
While their dilemma may appear to be simple or even theoretical yet in reality it is not. In fact it is one of the most important factors to consider in starting a business as it will impact on the extent of your personal liability as the owner or partner or a stockholder. It will also affect the future of your business its survival growth and profitability.