State seven demerits of partnership.

      

State seven demerits of partnership.

  

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Simon
• The decision making may be slow because all partners must be consulted.
• If one partner makes a mistake, it may result in losses which are shared by all the partners.
• The liability of some partners is limited.
• There may be termination of the partnership if there is continuous disagreements among partners.
• A hard working partner may not be rewarded in proportion to his\her effort because the profits are shared among all partners.
• A partnership may have limited access to a variety of managerial skills especially where the partners manage the business themselves.
• A partnership may have limited access to capital compared to limited companies hence it may be unable to finance major developments.
• A partnership that relies heavily on one partner may be adversely affected in case of retirement or death of that partner.


skilled writter answered the question on May 15, 2018 at 05:44


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