What’s the advantage of a partnership?

M:Barbara, what have you been doing?
W:I went into business with my friend, Jean.
M:How’s it going?
W:Pretty well. We get along quite well and the shop is beginning to attract more customers.
M:Good. Are you two a partnership?
W:Yes. I’m very pleased about it.
M:I guess it’s not too risky for a business.
W:We haven’t had any problems, although I suppose all business can be risky.Being partners, we’re both liable.
M:Did you both put the same amount of money into the business? Or do you mind my asking?
W:To tell you the truth,we didn’t invest the same amount of capital. But we’ve combined our resources very well, I think.
M:It sounds like it. That is one advantage of a general partnership. One partner can invest less capital than the other—in fact, no money at all—but a partner can contribute important services or skills, sometimes just a name or reputation.
W:Exactly.
M:What kind of arrangement do you have for distribution of profits and losses?
W:They are equally shared. We hope to be in business for a long time.
M:Good for you.