FACULTY OF BUILT ENVIRONMENT

DEPARTMENT OF QUANTITY SURVEYING

PROFESSIONAL PRACTICES III

(SBEQ4512)
SESSION 2017/2018-2

LECTURER NAME: Prof Dr Abdul Ghani Bin Khalid &

Assoc. Prof Dr Sarajul Fikri Bin Mohamed

INDIVIDUAL ASSIGNMENT: Advantages and disadvantages of sole

proprietorship, partnership and multidisciplinary practice.

Name: AMEERA SHUHADA BINTI SHAHRIL

Matric Number: A14BE0007
Date submission: 16 April 2018
Advantages and disadvantages of sole proprietorship, partnership and multidisciplinary practice
No Type of business Advantages Disadvantages
structures
1. Sole  Simplest business structure  No risks sharing
proprietorship  Less coordination costs  Expose to capital constraints
 No sharing profits  Having impacts on personal assets
 Faster decision making process  Expose to unrealistic monthly
 Minimal enforcement by government workload
regulation  Unlimited liability for debts
 Can be dissolved informally  Less variety of solution during
 Easy to manage and form decision making process
 Owner obliges to pay personal incomes  Business may come to an end at
taxes on the profit the owner’s death

1
2. Partnership /  Risk sharing amongst the partners  Every decision must have every
corporation  Pooled expertise partners’ concern
 Pooled resources  Longer decision making process
 Can be dissolved informally  Profit sharing with other partners
 Partners share the decision making  Expose to bad reputation if one of
 Easy to manage and run the partners contravene the ethics
 Easy to establish and code of practice

 Limited external regulation  Expose to disagreements and

 More capital available friction between the partners

 Less formal and legal obligations  No independent legal status

 Having several accesses to knowledge,  Unlimited liability

skills, experiences and networks

 More privacy as any business affairs
can be kept amongst the partners
 Equality in right to manage the firm

2
3. Multidisciplinary  More stable  Complicated structures
practice  Limited liability  Required high cost coordination
 Risk sharing  Need lawyer services to establish
 Easily gain client trusts  Engage with lot of procedures and
 Improve communication ability among regulations
the stakeholders  Expose to time pressure
 Variety of expertise  Require high level of commitment
 High sense of achievement and and team working
professional abilities amongst the  Expose to disagreement
stakeholders
 Enhance innovation and develop more
skills
 Pooled skills and resources
 More business opportunity

3
References
Advantages and Disadvantages of Sole Proprietorships. (5 June, 2007). Retrieved 14 April,
2018, from AllBusiness.com:
https://archive.nytimes.com/www.nytimes.com/allbusiness/AB4113314_primary.html
?mcubz=3

Advantages and Disadvantages of Different Business Entities. (2017). Retrieved 14 April,

2018, from Jux Law Firm: https://jux.law/advantages-and-disadvantages-of-business-
entities-mn-business-lawyer/

Partnership – advantages and disadvantages. (27 February, 2017). Retrieved 13 April, 2018,
from Business Tasmania: https://www.business.tas.gov.au/starting-a-
business/choosing-a-business-structure-intro/partnership-advantages-and-
disadvantages

Adrian. (1 March, 2010). Advantages and Disadvantages of Partnership. Retrieved 12 April,

2018, from The Company Warehouse:
https://www.thecompanywarehouse.co.uk/blog/advantages-and-disadvantages-of-
partnership

Haydee M. Cuevas, P. a. (2012). Benefits and Challenges of Multidisciplinary Project Team:

"Lesson Learn" for Researchers and Practitioners. International Test and Evaluation
Association , 58-64.

Hsien-Hui Tang, E. H. (2013). The advantages and disadvantages of multidisciplinary

collaboration in design education. 1-10.

Korchak, J. (27 August, 2017). Advantages and disadvantages of a partnership business.

Trebilcock, E. M. (n.d.). An Economic Analysis of Alternative Business structures for the

Prectice of law. Retrieved 14 April, 2018, from
https://www.law.utoronto.ca/utfl_file/count/documents/iacobucci/iacobucci_01_lo.pdf