ENTREPRENEURIAL OPPORTUNITIES
IDENTIFYING AND EVALUATING BUSINESS OPPORTUNITIES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The investment of the same amount of capital
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The performance limited management duties
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The liability for the losses of the business
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The responsibility for preparing the annual report
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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: -One of the largest disadvantages of developing a general partnership is the fact that all individuals are liable together for the decisions, debts, and obligations of the partnership. This includes legal problems such as breach of contracts and torts.
Detailed explanation-3: -Public disclosure is the main disadvantage of an LLP. Income is personal income and is taxed accordingly. Profit can not be retained in the same way as a company limited by shares. An LLP must have at least two members. Residential addresses were historically recorded at Companies House.
Detailed explanation-4: -Lack of Separate Legality. Unrestricted liability. Limited capital access. Slower and harder decision-making. Perception of low prestige. Possibility of disagreement and conflict. More items