Question

Answer the following questions:
Mention any four merits of partnership firms.

Answer 1

Partnership firms are the firms which are carried on by two or more people who mutually come to an agreement either verbal or written to carry out a business by contributing appropriate capital and share profits in a prescribed ratio.

The merits of a partnership are :

1. Abundant Capital.

2. More Managerial skills.

3. The firm is not affected by the dead or retirement of any one partner.

4. Easy incorporation process.