Question

explain any four merits and four limitations of partnership form of business. for 8 marks​

Answer 1

Answer:

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Explanation:

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Answer 2

Answer:

Merits of partnership firm

1. Easy to start and dissolve

A partnership firm can be setup easily and quickly. There is not much legal formalities and expenditures are involved in the establishment of a partnership. Similarly, a partnership firm can be closed down very easily and quickly.

2. Higher capital

Many partners invest capitals and there is higher flexibility in capital because new partner can be agreed to be associated and investing can be increased

3.Higher innovation

Many partners use their own ideas and innovation capacity. So there is unlimited managerial ability

4.Reduction of work load

Partners mustn’t work more to earn more profit. Higher profit generation is important.