Meryline and Calvince are two lawyers who want to start a legal firm. Explain five limitations they may face during operations of the business.

Meryline and Calvince are two lawyers who want to start a legal firm. Explain five limitations they may face during operations of the business.

  • A mistake made by one of the partners affects the other partners.
  • Liability of some partners is unlimited.
  • continued disagreement leads to dissolution.
  • Decision-making may be slow due to consultation.
  • Actions taken by one partner is binding to all partners.
  • Limited access to sources of capital compared to companies.
  • A partnership that relies heavily on one partner may be adversely affected in case he retires or dies.
  • Limited access to variety of managerial skills.
  • A hard working partner may not be rewarded in proportion to his/her effort because the profits are shared among all the partners.
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