Disadvantages of the partnership are

Expert Solution

Followings are the disadvantages of the partnership;

1. Unlimited liabilities of the partners.

2. Personal properties of the members of the partnership can be used for the debts of partnership firm.

3. There may be higher conflict between members of the partnership in decision making.

4. Partners of the firm is also liable for the actions of the other partners in the firm.

5. Share of a partner can not be transferred to new member without consent of all remaining members of the firm.

6. Status of partnership firm is not much stable like corporation because partnership is dissolved on entry and exit or any member.

7. Sometime profit sharing agreement may lead for conffliction amongst partners because each partner can not devote equal efforts in the firm.

8. Finance can not be raised easily in case of partnership which can be raised easily in case of a corporation.

9. Quick decision making is not possible in case of partnership firm because all partners are involved in decision making etc.

jeff jeffy answered 2 years ago

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