Weaknesses Or Drawbacks Of Partnership Business

Weaknesses Or Drawbacks:-

Here some weaknesses or drawbacks of partnership business are listed below:-

1. Since the partners have unlimited liability, some partners will have to bear the debt of even financially weak partners.
2. There is no continuity in business, since if a partner dies, the business is dissolved.
3. It is difficult to liquidate or transfer partnership.
4. It is difficult to run on large scale.
5. On the non-financial aspect, problem in partnership arises particularly in managerial area. The particular work of the partners is not clear. If a partner causes loss in the business, the result will have to be borned by all. consequently, antagonism and misunderstanding arises among the partners. However, this problem can be involved by specifying the function and duty of each partner.
6. The partnership business survives on the basis of mutual agreement among the partners. it is difficult to maintain such understanding in difficult or miserable market situations.