Concept:The number of partners in a partnership can be both an advantage and a disadvantage to the business.
Explanation:In a partnership, the number of partners is limited, usually from 2 to 20 persons.
A larger number of partners brings more capital, ideas, and shared skills, which is a merit.
However, a larger number can also lead to disagreements, slow decision-making, and smaller profit shares, which is a demerit.
The unlimited nature (I) is only a demerit because partners have unlimited liability.
The withdrawal of a major partner (III) and bearing of risk (IV) are mainly demerits or general features, not both merit and demerit.
Therefore, only the number of partners serves as both merit and demerit.
Answer:C. II only