ZIMSEC O Level Commerce Notes: Advantages and Disadvantages of Partnerships
- Management is duties are shared amongst the partners.
- More capital can be raised.
- More skills are available resulting in better quality decision making.
- Specialisation is possible.
- Partners can consult one another.
- There are fewer legal formalities.
- Losses are shared amongst partners.
- Disputes may lead to the dissolution of the partnership.
- Some partners have unlimited liability.
- Consultations may lead to delays in decision making.
- There is no continuity as the partnership is dissolved if one of the partner dies or leaves the partnership.
- Agreements made by one partner are binding to the whole partnership.
- Amount of capital raised is still limited due to a cap on the number of partners for most partnerships.
- Profits have to be shared among partners.
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