9 Disadvantages of partnership form of business

A partnership is an association of people who agree to run the business together with a view to making a profit




DISADVANTAGES OF PARTNERSHIP

  • Partners have limited liability except for limited liability
  • Lacks continuity of existence; death of partners may end the business
  • It has no separate legal status; no difference between the partners and the business
  • Disagreements and quarrels are obvious happen and it can lead to the dissolution of the partnership




  • Sharing of profits may be a source of conflict especially if there is no pre-agreed sharing ratio
  • A contract made by one partner binds everyone.