State the merits of partnership firm.
Answers
Answer:
In the case of a partnership firm, i.e. a commonly used form of business organization. There are many merits of such a firm, for instance, how the workload can be shared among partners, responsibilities are divided, the costs can be shared which will make it easier to cope up with competitors. The best part about such partnership firms is that it allows the partners to have a greater borrowing capacity.
Answer:
As per the question
Merits of Partnership Firm :
* Easy information
* Large Resource
* Flexibility in operation
* Sharing
Easy information : registration or incorporation is not required in case of partnership firm LLP or company. it can be formed without any legal formalities and expenses . they are simple and economical to firm
Large Resources : Due to more number of partners the partnership firm has larger resources for business operations as compared to sole proprietorship firm
Flexibility in operation : Due to limited number of partner there can amend any objectives or change any operations any time by mutual consent
Sharing: In partnership every partner bears the risk individual as it is easier compared to sole proprietorship