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which of the following is an advantage of a partnership? A.Unlimited Liability B.mutual agency C. Limited...

which of the following is an advantage of a partnership?

A.Unlimited Liability
B.mutual agency
C. Limited life
D. None of the above

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Answer #1

a partnership firm is a form of organisation which is carried by two or more partners which agree to share profit and losses on a predetermined ratio.

there are several features of partnership firm -

1. unlimited liability - it means that in individuals are personally liable to creditores of organisation .

it is a disadvantage of partnership firm

2. mutual agency - it means that a partner decision binds all other partners also. if a partner has taken some bad decisions , all the partner have to bear the consequences. in this sense it is also a disadvantage.

3. limited life - if any of the partner dies , the organisation comes to an end. therfefor it also a disadvantge.

hence the correct answer is d none of the above

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