Partners have to answer to other partners for their actions and each has mutual agency and unlimited liability. Therefore, individual partners are legally liable for the financial debt arising from actions of other partners. A partnership is dissolved on the death or withdrawal of a partner, although the business may continue with new partners. This arrangement is more cumbersome than the selling of shares in a corporation. Shares can usually be transferred easily among investors. Also, a corporation usually has access to a larger amount of capital, since shares can be issued to a wider range investors, particularly those who want to be involved with running the business. Corporate tax rates can be more favourable than personal tax rates.
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