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Apart from sole proprietorship we also have another form of business organization called a partnership. Sometimes when the business grows and it becomes extremely complex for the entrepreneur to handle the firm, he looks for a partnership form of the business. This fulfills his requisite capital and resources and also helps in the supervision and control of the work. The proprietorship also helps the division of work and the risk is also shared thereby reducing the burden.
The following are the advantages of registering a partnership firm:
- Partnership firms are very easy to start and needs only a partnership deed.
- The partners in the partnership firm share the decision making thereby reducing the demerits of passing resolutions.
- Being a partnership firm also helps in raising funds easily
- Each partner has a certain range of powers and this paves the way for a diligent workforce.