BUSINESS ADMINISTRATION
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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ease of formation
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owners share responsibilities
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limited liability
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possibility of personality conflict
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Detailed explanation-1: -Disadvantages of a partnership include that: the liability of the partners for the debts of the business is unlimited. each partner is ‘jointly and severally’ liable for the partnership’s debts; that is, each partner is liable for their share of the partnership debts as well as being liable for all the debts.
Detailed explanation-2: -Partnership disputes can arise for many reasons as two partners own a business together and work together. However, some of the most common causes of partnership disputes include: A breach of fiduciary duty: Partners have a duty to act in the best interests of the business.
Detailed explanation-3: -Other advantages of a general partnership are that the partners can combine resources and share the financial commitment. There are disadvantages to general partnerships, principally liability. General partners are personally liable for the business debts and liabilities.