Explain any five merits and five demerits of partnership.

Explanation

Merits of partnership firm:


1.Easy to start and dissolve:
A partnership firm can be setup easily and quickly. There is not much legal formalities and expenditures are involved in the establishment of a partnership. Similarly, a partnership firm can be closed down very easily and quickly.


2.higher capital:

Many partners invest capitals and there is higher flexibility in capital because new partner can be agreed to be associated and investing can be increased.

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