Partners' own possessions are at risk as the business will have unlimited liability.

As the owners have to work together they may disagree over some of the business decisions they have to make. This can have a negative efect on the business.

Unlike a sole trader the profits have to be shared in a partnership. This means that the owners will receive a smaller amount of profit for their efforts.

Who does what in the business? Partners may disagree on what functions are carried out in the business. Some partners may not 'pull their weight' which could lead to disagreement.

If there is no Deed of Partnership then the law states that all partners are equal. Therefore partners should draw up a Deed of Partnership. This will involve solicitors and incur costs.