Question on: JAMB Commerce - 2023

I. Its unlimited nature
II. The number of partners
III. The withdrawal of a major of partner
IV. The bearing of risk

Which of these is both merit and demerit in partnership?

III and IV

I only

II only

I and II

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Correct Option: C

The characteristic that can be both a merit and demerit in a partnership is II only, which refers to "The number of partners."

- Merit: Having multiple partners allows for a pooling of resources, diverse skills, and shared responsibilities, which can enhance decision-making and business operations.

- Demerit: However, a higher number of partners can also lead to conflicts, slower decision-making processes, and complexities in profit sharing and management, especially when partners have differing visions or levels of commitment.