Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 19 - No. 3)
What are the disadvantages of forming a partnership?
Limited liability.
Difficulty in decision-making.
Partnership may be difficult to expand.
Raising additional capital to finance further business expansion can be difficult.
Explanation
Partnerships, while offering advantages, also have disadvantages. Limited liability is not a disadvantage; difficulty in decision making, issues in raising capital and problems in expanding are challenges.
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