Which of the following is an advantage of a partnership?

• A. Easy to set up and run
• B. Partners can specialise in their area of expertise
• C. Profit is shared
• D. Unlimited liability

Answer: (B)

Specialisation comes from bringing together partners with different strengths, so each person can focus on what they do best. In a partnership, one partner might handle marketing and sales, another manages finances, and a third runs day-to-day operations. This division of labour makes decisions faster and work more efficiently, helping the business use the skills of each person to grow beyond what a single owner could manage. That clear advantage—doing what each partner excels at—is why this option is the best. The other statements describe aspects that are not as strong an advantage (for example, ease of setup can be disputed, sharing profits is not itself a major benefit, and unlimited liability is a drawback).