Commercial Applications
Which of the following is NOT a demerit of partnership?
- Unlimited liability
- Limited Resources
- Secrecy
- Lack of public confidence
Partnership
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Answer
Secrecy
Reason — Secrecy is a merit of partnership, not a demerit. A partnership firm is not required to publish its annual accounts, and the affairs of a partnership business can easily be kept secret and confidential. Unlimited liability, limited resources, and lack of public confidence are all demerits of partnership.
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A partnership firm is not registered. The firm lent ₹50,000 to a customer, but the customer failed to repay it. Can the firm take legal action against the customer?
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