How does having a partnership increase the goodwill of the firm? – InterviewSolution

1.	How does having a partnership increase the goodwill of the firm?
Answer» In partnership firm, all the partners have unlimited liability to pay-off business debts. This creates a positive impact on creditors or vendor’s mind. They do not hesitate to sell goods on credit or lend money knowing that if one of the partners fails to pay back the other will have to pay anyhow.

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