MANAGEMENT

Detailed explanation-1: -Disadvantages of a partnership include that: the liability of the partners for the debts of the business is unlimited. each partner is ‘jointly and severally’ liable for the partnership’s debts; that is, each partner is liable for their share of the partnership debts as well as being liable for all the debts.

Detailed explanation-2: -Disadvantages of partnership, on the other hand, include potential liabilities, a loss of autonomy, emotional issues, future selling complications, and a lack of stability.

Detailed explanation-3: -Risks of Unlimited Liability In a partnership or sole proprietorship, the owners are personally liable for all debts of the business. Owners are also liable for any unlawful acts committed by the owners or even the employees.

Detailed explanation-4: -Lack of Personal Interest: Unlike proprietorship and partnership, the day-to-day affairs of a company are looked after by salaried managers. Since they are the employees not the owners, they do have hardly any personal interest and commitment in the company. This may result in inefficiency and, in turn, losses.