Get premium membership and access questions with answers, video lessons as well as revision papers.

Describe the advantages of carrying on business as a partnership as opposed to a limited liability company.

Describe the advantages of carrying on business as a partnership as opposed to a limited
liability company.

Answers

1. Specialization: creates room for specialization particularly the professional firms.

2. Sharing of losses: this reduces the amount borne by a single partner.

3. Shared management: partners participate in the decision making process and in the management of the firms business.

4. Flexibility: can change the nature of business with the consent of all partners.

5. Easy to form: formation of partnership is not subject to legal formalities.

---

raphael answered the question on April 15, 2018 at 17:35

Next: State four acts of commission that may constitute professional misconduct under the Accountants Act (Cap 531) Laws of Kenya.
Previous: You have been asked to draft a partnership deed for a small retail firm of five partners. State the matters, if any, that you will...

View More CPA Commercial Law Questions and Answers | Return to Questions Index

Related Questions

• State four acts of commission that may constitute professional misconduct under the Accountants Act (Cap 531) Laws of Kenya.(Solved)
  

  State four acts of commission that may constitute professional misconduct under the
  Accountants Act (Cap 531) Laws of Kenya.

  Date posted: April 15, 2018.  Answers (1)

• Explain the nature and advantages of commercial arbitration as a means of settling disputes.(Solved)
  

  Explain the nature and advantages of commercial arbitration as a means of settling disputes.

  Date posted: April 15, 2018.  Answers (1)

• Explain each of the following rules of Statutory Interpretation; (i) Noscitur a sociis; (ii) Ejusdem generic; (iii) Mischief rule.(Solved)
  

  Explain each of the following rules of Statutory Interpretation;
  (i) Noscitur a sociis;
  (ii) Ejusdem generic;
  (iii) Mischief rule.

  Date posted: April 15, 2018.  Answers (1)

• Define Statute law and discuss its advantages(Solved)
  

  Define Statute law and discuss its advantages.

  Date posted: April 15, 2018.  Answers (1)

• Explain the rules that govern the measure of damages in the law of contract.(Solved)
  

  Explain the rules that govern the measure of damages in the law of contract.

  Date posted: December 30, 2016.  Answers (1)