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Partnership form of organisation was developed due to the inherent limitations of sole proprietorship. One of them is limited capital, identify the other two?
- a)Limited managerial ability, limited continuity
- b)Limited continuity, unlimited liability
- c)Limited managerial ability, unlimited liability
- d)Lack of secrecy, limited continuity
Correct answer is option 'A'. Can you explain this answer?
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Partnership form of organisation was developed due to the inherent lim...
In partnership form of business the managerial ability and continuity is limited as there are limited number of partners engaged in business with limited amount of capital.
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Partnership form of organisation was developed due to the inherent lim...
Introduction:
Partnership form of organization is a type of business structure in which two or more individuals come together to carry out a business with the aim of earning profits. It is a popular form of organization, especially for small and medium-sized enterprises.
Reasons for the development of partnership form of organization:
The partnership form of organization was developed due to the inherent limitations of sole proprietorship. These limitations include:
1. Limited capital:
In a sole proprietorship, the capital is limited to the personal savings and resources of the proprietor. This limits the ability of the business to expand and undertake larger projects. By forming a partnership, individuals can pool their resources and contribute more capital, allowing the business to grow and take advantage of opportunities that may require a larger investment.
2. Limited managerial ability:
Sole proprietors often face limitations in terms of their managerial ability and expertise. They may not possess all the necessary skills and knowledge to effectively manage all aspects of the business. In a partnership, partners can bring different skills and expertise to the table, which can enhance the overall managerial ability of the business. This enables the partners to collectively make better decisions and manage the business more efficiently.
3. Limited continuity:
In a sole proprietorship, the business is closely tied to the proprietor. If the proprietor retires, becomes incapacitated, or passes away, the business may cease to exist. This lack of continuity can be a significant drawback, especially when it comes to long-term planning and building a brand. By forming a partnership, the business can achieve greater continuity as partners can continue the business even if one partner leaves or is unable to contribute actively.
Conclusion:
The partnership form of organization addresses the limitations of sole proprietorship by providing access to additional capital, enhancing managerial ability, and ensuring greater continuity for the business. These advantages make partnerships a viable and attractive option for entrepreneurs looking to start a business or expand an existing one.
Partnership form of organization is a type of business structure in which two or more individuals come together to carry out a business with the aim of earning profits. It is a popular form of organization, especially for small and medium-sized enterprises.
Reasons for the development of partnership form of organization:
The partnership form of organization was developed due to the inherent limitations of sole proprietorship. These limitations include:
1. Limited capital:
In a sole proprietorship, the capital is limited to the personal savings and resources of the proprietor. This limits the ability of the business to expand and undertake larger projects. By forming a partnership, individuals can pool their resources and contribute more capital, allowing the business to grow and take advantage of opportunities that may require a larger investment.
2. Limited managerial ability:
Sole proprietors often face limitations in terms of their managerial ability and expertise. They may not possess all the necessary skills and knowledge to effectively manage all aspects of the business. In a partnership, partners can bring different skills and expertise to the table, which can enhance the overall managerial ability of the business. This enables the partners to collectively make better decisions and manage the business more efficiently.
3. Limited continuity:
In a sole proprietorship, the business is closely tied to the proprietor. If the proprietor retires, becomes incapacitated, or passes away, the business may cease to exist. This lack of continuity can be a significant drawback, especially when it comes to long-term planning and building a brand. By forming a partnership, the business can achieve greater continuity as partners can continue the business even if one partner leaves or is unable to contribute actively.
Conclusion:
The partnership form of organization addresses the limitations of sole proprietorship by providing access to additional capital, enhancing managerial ability, and ensuring greater continuity for the business. These advantages make partnerships a viable and attractive option for entrepreneurs looking to start a business or expand an existing one.
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Partnership form of organisation was developed due to the inherent limitations of sole proprietorship. One of them is limited capital, identify the other two?a)Limited managerial ability, limited continuityb)Limited continuity, unlimited liabilityc)Limited managerial ability, unlimited liabilityd)Lack of secrecy, limited continuityCorrect answer is option 'A'. Can you explain this answer?
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Partnership form of organisation was developed due to the inherent limitations of sole proprietorship. One of them is limited capital, identify the other two?a)Limited managerial ability, limited continuityb)Limited continuity, unlimited liabilityc)Limited managerial ability, unlimited liabilityd)Lack of secrecy, limited continuityCorrect answer is option 'A'. Can you explain this answer? for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about Partnership form of organisation was developed due to the inherent limitations of sole proprietorship. One of them is limited capital, identify the other two?a)Limited managerial ability, limited continuityb)Limited continuity, unlimited liabilityc)Limited managerial ability, unlimited liabilityd)Lack of secrecy, limited continuityCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Partnership form of organisation was developed due to the inherent limitations of sole proprietorship. One of them is limited capital, identify the other two?a)Limited managerial ability, limited continuityb)Limited continuity, unlimited liabilityc)Limited managerial ability, unlimited liabilityd)Lack of secrecy, limited continuityCorrect answer is option 'A'. Can you explain this answer?.
Partnership form of organisation was developed due to the inherent limitations of sole proprietorship. One of them is limited capital, identify the other two?a)Limited managerial ability, limited continuityb)Limited continuity, unlimited liabilityc)Limited managerial ability, unlimited liabilityd)Lack of secrecy, limited continuityCorrect answer is option 'A'. Can you explain this answer? for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about Partnership form of organisation was developed due to the inherent limitations of sole proprietorship. One of them is limited capital, identify the other two?a)Limited managerial ability, limited continuityb)Limited continuity, unlimited liabilityc)Limited managerial ability, unlimited liabilityd)Lack of secrecy, limited continuityCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Partnership form of organisation was developed due to the inherent limitations of sole proprietorship. One of them is limited capital, identify the other two?a)Limited managerial ability, limited continuityb)Limited continuity, unlimited liabilityc)Limited managerial ability, unlimited liabilityd)Lack of secrecy, limited continuityCorrect answer is option 'A'. Can you explain this answer?.
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Partnership form of organisation was developed due to the inherent limitations of sole proprietorship. One of them is limited capital, identify the other two?a)Limited managerial ability, limited continuityb)Limited continuity, unlimited liabilityc)Limited managerial ability, unlimited liabilityd)Lack of secrecy, limited continuityCorrect answer is option 'A'. Can you explain this answer?, a detailed solution for Partnership form of organisation was developed due to the inherent limitations of sole proprietorship. One of them is limited capital, identify the other two?a)Limited managerial ability, limited continuityb)Limited continuity, unlimited liabilityc)Limited managerial ability, unlimited liabilityd)Lack of secrecy, limited continuityCorrect answer is option 'A'. Can you explain this answer? has been provided alongside types of Partnership form of organisation was developed due to the inherent limitations of sole proprietorship. One of them is limited capital, identify the other two?a)Limited managerial ability, limited continuityb)Limited continuity, unlimited liabilityc)Limited managerial ability, unlimited liabilityd)Lack of secrecy, limited continuityCorrect answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
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