When it comes to India, one of the most popular firms that have come up is the Partnership firm. It is a form of business entity where two individuals partner up and join forces to conduct a business for the purposes of profit.
However, just as it is with every sort of business entity, there are advantages and there are drawbacks that are associated with this particular form of business entity and they are the following:
The benefits that are associated with a partnership firm are as follows:
However, all is not green in the world of partnership for there are certain drawbacks to this as well.
The drawbacks that are associated with this sort of firma are as follows:
Conclusion:
There are both ups and downs when it comes to a partnership firm. However, some of the benefits and disadvantages come with any form of business entity. While the lack of a central figure and lack of limited liability is quite obvious, there is a sense of freedom associated with such a company that still makes it alluring to traders.