Merits :
(a) Ease of formation and closure : There is no compulsion for registration of the firm.
(b) Balanced decision making : Partners can oversee different areas according to their area of expertise.
(c) More funds : As the capital is contributed by a number of partners.
(d) Sharing of risks : Risks of losses is shared by all the partners, reducing the burden on individual partner.
Demerits :
(a) Unlimited liability : Partners' personal resources can be used to repay business debt.
(b) Limited resources : As there is restriction on numbers of partners so less capital contribution.
(c) Possibility of conflicts : Difference in opinion of partners on same issues may lead to disputes between them.
(d) Lack of continuity of business : *****, lunacy, insolvency of any partner may bring an end to the business.
