The risk involved in a partnership firm is reduced because ___________________.

Only one individual bears all the cost.

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Neither bears the cost and the bank takes care of the debt.

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Each partner is equally and collectively involved in paying off the debt.

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

None of the above

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is C
Each partner is equally and collectively involved in paying off the debt.

The risk involved in a partnership organization is slightly reduced because each partner is individually and collectively responsible to pay off the debts of the business.

Suggest Corrections

Similar questions

A person, who organises production, takes important decisions regarding production and bears the risk involved in the production process is called a/an

Q. Even a single partner may be called upon to pay the debts of a partnership firm.

Q. An entrepreneur and a manager differ in their standing, an entrepreneur is the ___________ of the organization and he bears all the risk and uncertainties involved in running an organization where as a manager is an _______ and does not undertake responsibilities for any risk.

Q. An entrepreneur and a manager differ in their standing, an entrepreneur is the_of the organization and he bears all the risk and uncertainties involved in running an organization where as a manager is an____and does not undertake responsibilities for any risk.

Q. Each job has a _______ prepared for it that bears the job number and which is used to collect all cost data relating to job.

Join BYJU'S Learning Program

The risk involved in a partnership firm is reduced because ___________________.

The correct option is C Each partner is equally and collectively involved in paying off the debt. The risk involved in a partnership organization is slightly reduced because each partner is individually and collectively responsible to pay off the debts of the business.

The correct option is C
Each partner is equally and collectively involved in paying off the debt.

The risk involved in a partnership organization is slightly reduced because each partner is individually and collectively responsible to pay off the debts of the business.