The following are the merit of partnership an they are as follows:
- Easy while it is Opened and Closed: To form a partnership firm is very easy. One has to just sign in an agreement by the partners who wish to begin the firm in which they agree to share the capital, profit/loss and not to mention the risks associated with it. Registering the same is not mandatory.
- Balanced Decision Making: The partners can manage almost all the activities of the firm since each one will be specialized in each activity. Since the job is divided, there is very chance for errors as well as reduce their burden. This leads to a balanced decision making.
- More Funds: There are many people to contribute in a partnership an thi is useful in raising huge amount as capital. This feature is absent in a sole proprietorship.
- Risk Sharing: The risk is shared by the partners and reduces the anxiety, trouble and their anxiety.
- Secrecy: It is not mandatory for the partnership firms to publish their accounts or submit the reports. So they can maintain their operations in utter secrecy.