UNLIMITED LIABILITY;
IN PARTNERSHIP BUSINESS, THE LIABILITY OF PARTNERS IS UNLIMITED
AND PERSONAL PROPERTY OF THE PARTNERS CAN BE SOLD FOR THE PAYMENT OF THE FIRM'S
DEBTS. DUE TO THIS , THE PARTNERS ALWAYS TRY TO AVOID INNOVATIVE AND RISKY BUSINESS.
LAKE OF CAPITAL;
IT IS QUITE RIGHT THAT THE CAPITAL OF PARTNERSHIP BUSINESS IS GREATER
THAN THE SOLE PROPRIETORSHIP.BUT AS COMPARED TO THE JOINT STOCK COMPANY. CAPITAL OF PARTNERSHIP
BUSINESS IS SMALL WHICH DOES NOT ALLOW INNOVATION AND ITS EXPANSION ON LARGE SCALE.
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