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Question
What Are the Disadvantages of Partnership?
What Are the Disadvantages of Partnership?
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Solution
The following are some of the disadvantages of a partnership business:
- A partnership business makes one partner responsible for sharing profits as well as losses that arise from the business. In other words, partners have unlimited liability.
- Loss of autonomy occurs in a partnership.
- Conflicts may arise due to differences of opinion among partners.
Also read:
- MCQs on Partnership
- Partnership Deed
- What Is Partnership
- Difference Between Sole Proprietorship and Partnership
Stay connected to BYJU’S for more such questions and answers.
The following are some of the disadvantages of a partnership business:
- A partnership business makes one partner responsible for sharing profits as well as losses that arise from the business. In other words, partners have unlimited liability.
- Loss of autonomy occurs in a partnership.
- Conflicts may arise due to differences of opinion among partners.
Also read:
- MCQs on Partnership
- Partnership Deed
- What Is Partnership
- Difference Between Sole Proprietorship and Partnership
Stay connected to BYJU’S for more such questions and answers.
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