What are the advantages and disadvantages of the firm?

What are the advantages and disadvantages of the firm?

The six advantages of the firm are as follows.

1. The firm establishment is relatively easy because it does not require a deed of establishment.
2. The continuity of the company is guaranteed
3. Capital accumulation can be obtained greater than individuals
4. It is easy to get credit from other parties because they have more excellent financial capabilities
5. The risk is lighter because the firm's threat is not borne alone but shared by the owners
6. More excellent management capability because of the division of labor among the members

Four disadvantages of the firm are as follows

1. The owner's liability is not limited to the company's debts. If the firm has an obligation, then personal wealth is the guarantee for debt repayment.
2. Difficulties in managing management because all owners can control the running of the company
3. An ally's mistake can result in losses for the firm that must be borne jointly.
4. Decision-making will experience difficulties because every decision must be based on other owners' agreements.

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