Describe the advantages of carrying on business as a partnership as opposed to a limited liability company.

Advantages of Partnership

  • Specialization: creates room for specialization particularly the professional firms.
  • Sharing of losses: this reduces the amount borne by a single partner.
  • Shared management: partners participate in the decision making process and in the management of the firms business.
  • Flexibility: can change the nature of business with the consent of all partners.
  • Easy to form: formation of partnership is not subject to legal formalities.

KASNEB Revision kits and past papers with answers

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