Partnership form of organisation has developed due to the inherent lim

1.	Partnership form of organisation has developed due to the inherent limitations of sole Proprietorship. Which are those limitations?
Answer» Following are the inherent limitations of Sole Proprietorship: (i) Limited Capital (ii) Limited Managerial Ability (iii) Limited Continuity In this era of specialization, expansion and diversification, expecting one man to combat them all is not possible. Business acumen and wealth seldom meet in one person. This, desirable combination probably led to emergence of Partnership form of business.

Partnership form of organisation has developed due to the inherent limitations of sole Proprietorship. Which are those limitations?

Answer»

Following are the inherent limitations of Sole Proprietorship:

(i) Limited Capital

(ii) Limited Managerial Ability

(iii) Limited Continuity

In this era of specialization, expansion and diversification, expecting one man to combat them all is not possible. Business acumen and wealth seldom meet in one person. This, desirable combination probably led to emergence of Partnership form of business.

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Partnership form of organisation has developed due to the inherent limitations of sole Proprietorship. Which are those limitations?

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