Question

What are the disadvantages of a general partnership?

Answer 1

Burdens of an association incorporate that:

• The liability of the partner for the obligations of the business is limitless.

• Each accomplice/partner is together at risk for the association’s obligations/debts.

• There are perils of conflicts and communication among accomplices/partners and the board.

• Each accomplice/partner is a unique part of the association and is at risk for activities by different accomplices.

• In the event that accomplices join or leave, you will likely need to value all the association’s resources and this can be expensive.

Also see:

• MCQs on Partnership
• What Is Partnership?
• Difference Between Sole Proprietorship and Partnership
• Nature of Partnership

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