mr. xy and z wants to start a business enterprices and work with each other. explain 3 merits and 3 demerits of such type of organisation
 

Dear student, 

In the given situation the three individuals wish to form a partnership. 

The following are the merits of partnership:

• There is ease of formation and closure as no mandatory registration is required and can be shut down with the consent of all the partners.
• It involves balanced decision making
• It reduces the burden of risk on any one partner

The following are the demerits of partnership:

• The liability of all the partners is unlimited
• There may arise a difference in the views and opinions of different partners and lead to conflicts
• It lacks continuity as death, retirement or insolvency of any one partner leads to end of partnership firm.