Applicability of a partnership firm to Different Kinds of Business

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A partnership firm can secure better capital and managerial ability than a sole trading firm. But its capital and managerial ability are limited when compared to company form of organisation. It is not suitable for large scale business but well suited for small and medium scale business.

When moderate amounts of capital and diversified managerial talents are required the partnership would be a better choice. An application of partnership is found in automobile financing, stock- broking, consultancy services, accounting firms, distribution agencies etc.

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