GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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ease of formation
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owners share responsibilities
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limited liability
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possibility of personality conflict
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Detailed explanation-1: -Possibility of Conflicts – A partnership firm is run by a group of persons. The decision making authority is shared. Thus, there is possibility of a conflict among the partners. In case of differences of opinion, even good decision can be delayed.
Detailed explanation-2: -Lack of Stability If one partner chooses to retire, quit, or resign, then the business automatically dissolves. This can also happen if one partner dies suddenly or has to file for bankruptcy. For the remaining partner, this means a fast end to a profitable business that he or she has spent time and energy building.
Detailed explanation-3: -You have an extra set of hands. You benefit from additional knowledge. You have less financial burden. There is less paperwork. There are fewer tax forms. You can’t make decisions on your own. You’ll have disagreements. You have to split profits. More items •26-Oct-2022