Demerits of partnership

Demerits of partnership firm

a. No Business secrets: The partner can keep the secrets to himself but these secrets can be known to competitors or others when there is conflict among the partners

b. Uncertain existence: Death of any partner can sometime cause death of entire firm. Dishonesty, conflict and lack of resource also can collapse the firm

c. No Personal contact: A partner can’t be in a position to maintain intimate contacts with his customers and employees. He cannot be able enter to the requirements of each and every customer. Then there is no close personal touch which decreases the competitive strength of the business.

e. Unlimited liability: Proprietor is liable for all the debts of the business. In case the assets are insufficient to meet the debts, the personal property of the proprietor can be attached.