Merits of Partnership:

1. Combined Strengths: Partnerships allow the pooling of resources and expertise, which can lead to increased efficiency and effectiveness, making it easier to achieve common goals.

2. Shared Risk: Since partners share the risk and responsibility of business, each partner is accountable for their actions, which encourages responsible decision-making and risk-taking.

3. Flexibility: Partnerships are flexible, and partners can quickly adapt to market changes or shift business priorities.

4. Tax Benefits: Partnerships offer tax benefits as the profits and losses are shared among the partners, and each partner is taxed on their individual share of the income.

Demerits of Partnership:

1. Unlimited Liability: Partnerships have unlimited liability, meaning that each partner is personally liable for the debts and obligations of the business, which can put their personal assets at risk.

2. Disagreements: Disagreements among partners can lead to conflicts, which can affect the business's operations and success.

3. Limited Capital: Partnerships may face difficulty in raising capital, as the number of partners is limited.

4. Limited Life: Partnerships may have a limited life span as the partnership dissolves upon the death or withdrawal of a partner, which can lead to instability.

Types of Partners:

1. General Partners: They are responsible for the day-to-day operations and management of the business.

2. Limited Partners: They have limited liability and are not involved in the day-to-day operations of the business.

3. Sleeping Partners: They invest in the business but do not participate in the management or operations of the business.

Partnership Deed:

1. Partnership deed is a legal document that outlines the terms and conditions of the partnership, including the rights and responsibilities of the partners, the capital contributed by each partner, the profit-sharing ratio, and the duration of the partnership.

2. It helps to avoid misunderstandings and conflicts among partners by clearly defining the roles and responsibilities of each partner.

3. Partnership deed provides a legal framework for the partnership and helps to protect the interests of the partners.

4. It is essential to have a partnership deed to ensure that the partnership is legally recognized, and the partners are protected in case of any disputes or legal issues.

Merit - more fund , sharing of risk,ease of formation and close