Question

What Are the Two Main Advantages and Disadvantages of Partnerships?

Answer 1

The two advantages and disadvantages of partnership are as follows:

Advantages

1. Easy to form
2. Financial resources can be pooled together.

Disadvantages

1. Unlimited liability to all the partners
2. Conflicts may arise between partners over decision making.

Also read:

• MCQs on Partnership
• Partnership Deed
• What Is Partnership
• Difference Between LLP and Partnership

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