Partnership suffers from lack of public confidence as it is has no legal existence apart from its partners. The partnership, form is a poor choice from the view point of liquidity and transferability. It is easy to invest in partnership but difficult to withdraw the same. So the investment in partnership from of business is a frozen investment. If a partner dies or retire, the firm in the absence to an agreement to the country., is dissolved when full investment may not realized. Even if the remaining partners or outsiders are willing to purchase the vacated interest, it is often extremely difficult to arrive at a fair price.
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