What are some of the disadvantages of partnerships? Are the disadvantages enough to dissuade you from forming this type of business ownership?
What will be an ideal response?
Answers will vary. Disadvantages of the partnership form of business ownership include unlimited liability-each general partner being responsible for the debts of all other general partners-and the likelihood of management disagreements among partners. Lack of continuity and the challenges of getting an investment out of a partnership are also disadvantages. For many individuals, the disadvantages of a partnership outweigh the advantages. Unlimited liability for a general partner is especially troubling for partners with substantial personal wealth. If, however, partners can complement one another's strengths and can multiply the capital and credit brought into the firm by having more than one owner, the advantages may outweigh the disadvantages.
You might also like to view...
Which of the following stock terms is least like the others?
a. Market value b. Stated value c. Par value d. Legal capital
You are responsible for supervising order takers at Acme, Inc. Which of the following would you be LEAST likely to expect these people to perform?
A) executing the preapproach stage of the creative selling process B) assisting business customers C) processing customer transactions D) communicating with customers over the phone E) executing the close stage of the creative selling process
Lower-income consumer groups utilize the decision process more thoroughly than any other income group
Indicate whether the statement is true or false
The closing in a bad-news communication to employees must never look forward or discuss what will happen next because doing so can create a legal obligation
Indicate whether the statement is true or false