Overview
Documents
Benefits
Merits of Partnership Firm | Demerits of Partnership Firm |
1. Easy formation and registration process. | 1. Unlimited liability for partners. |
2. Shared workload and diverse skill sets. | 2.Potential disagreements between partners. |
3.Access to more capital and resources. | 3. Difficulty in transferring ownership. |
4. Flexibility in managing the business. | 4. Possibility of personal liability for the business’s debts and obligations. |
5. Shared profits and losses among partners. | 5. Lack of perpetual existence, as the partnership dissolves upon the death or retirement of a partner. |