Partnerships and Limited Liability Companies are most important types of business all over the world and so starting a business, Mr. Fernando and Perera want to know what type of business is suitable for their business .Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay Partnership is a good business structure in business. Then Mr. Fernando and Perera would like to start a business in Colombo. This means they want to build their own business as a partner. On the other hand, partners want to share their profits and liabilities equally. The types of partnerships are a general partnership, a limited partnership, a joint venture, and a strategic alliance. A general partnership means a partnership in which all partners have total obligation and unlimited private liability for the management of the business. A limited partnership in which the partner's liability is limited to his or her investments. Joint venture partnership where two companies come together to complete a specific project and the partnership ends after a set period of time. Finally, a strategic alliance is a partnership in which two companies work together for mutual benefits. Partnership depends on the ownership of two or more people, legal requirements, each partner must make a contribution to the partnership, partners are jointly liable for debts arising from the business, and finally, the life of the partnership is not separate from the life of partners. When Mr. Fernando and Perera choose partnership business, they can gain more strengths. These are, they have few legal requirements, they share the profits and therefore are motivated to work hard, a combination of new skills and ideas in a business and finally, they can share the responsibilities of decision making. On the other hand, the partnership has some weaknesses. These are: problems can arise if one or more partners are lazy, inefficient or even dishonest, another weak point is a legal entity that is not separate and responsible for the actions of the other partners, and finally, discussion between partners can slow down the process decision-making. and difficult to find a suitable partner. These are the strengths and weaknesses of partnership activities. Another type of business is a limited liability company. This means a company that issues shares. On the other hand, Messrs. Fernando and Perera have the obligation to contribute to the assets of the company, if specified in the company article attaching it to such shares. Subsequently the limited liability company was divided into private company, public company and offshore company. They can start their business as a private or public joint-stock company. But both companies have a difference. These are, for a private company a minimum of two people is required and for a public company a minimum of seven people is required. So, another difference is that private company can't trade shares on stock market and public company can trade shares on stock market and so private company can run different business and public company generally runs specific business. So, a joint stock company has some strengths and weaknesses. The strong points are: easy and economical to set up. Another plus point is that the share can be sold to family members and death and illness do not affect the running of a business. Finally, no responsibility for the shareholders. Then, the weak point of the limited liability company is that the profits must be shared, the accounts are not private, the shares are not.