Maharashtra State BoardHSC Commerce 12th Board Exam
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Write Short Notes on the Following. Merits of a Partnership Firm - Organisation of Commerce and Management

Short Note

Write short note on the following.
Merits of a partnership firm

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Merits of a partnership firm:
i. Easy formation: It requires an agreement (oral or written) between two or more partners for its formation. Thus, easy
ii. Sharing of risks: The risks in a partnership firm are shared jointly by all partners. This reduces the burden on each partner.
iii. Balanced decision making: Decision making is balanced, as all decisions are taken collectively by all partners.
iv. Confidentiality: As a partnership firm is not required to publish its accounts or submit its reports legally, confidentiality and
secrecy of information are maintained.
v. Greater flexibility: A partnership firm enjoys greater flexibility because not many restrictions are there under the Partnership
vi. Greater availability of resources: As partners pool their capital and resources, the business gets higher amount of funds
for its operations.

Concept: Registration of a Partnership Firm
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Micheal Vaz Organisation of Commerce and Management (OCM) HSC 12th Standard Maharashtra State Board
Chapter 1 Forms of Business Organisations
Distinguish between the following | Q 5 | Page 39
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