Question

Does partnership remove all the defects of sole proprietorship?

Answer 1

The partnership does not remove all the defects of sole proprietorship.

As, the disadvantages of sole proprietorship also persist in case of partnership trade.

The main issue which remains unchanged in both the cases is the factor of unlimited liability.

Both the partners will be held equally responsible for the positive and negative impacts of the company and pay the debts too.

Apart from that in both the cases the proprietor should fund, manage as well as continue the business by own.