Question

what is patnership? state its meri and demerits​

Answer 1

A partnership is a formal arrangement by two or more parties to manage and operate a business and share its profits. There are several types of partnership arrangements. In particular, in some partnerships, all partners share liabilities and profits equally, while in others, partners have limited liability.

Merits of partnership firm
1. Partnership firm can be setup easily and quickly.
2.higher capital
3.Higher innovation
4.Reduction of work load
5.Better decision
6. Harmonization of different ability
7.Credit facility
8.Close supervisions
9.Flexible
10.Reduced risk

Demerits of partnership firm
1. No Business secrets
2.Uncertain existence
3. Delay in decisions
4.Danger of conflict
5.Difficulty in transfer of shares