Which of the following is/ are disadvantage of partnership firm?

Unlimited Liability of Partners

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The duration of the partnership is always uncertain

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The partners should be like minded, have a common objective, be large hearted, have a cool temperament, should not unnecessarily cause friction and confusion among the partners

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All of above

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Solution

The correct option is C All of above
A partnership basically refers to the contract between two or more people who have agreed to carry on certain business in order to achieve common goals. The disadvantages of a partnership firm are
1. In a partnership firm, the partners have unlimited liability which means in the case of insolvency of the firm the credits can claim their outstanding on the personal assets of the partners.
2. The life of a partnership firm depends upon the life of its partners as there is no separate legal entity.
3. There are always some probability of disputes between the partners due to diversification of culture and background.

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