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What is the primary disadvantage of a partnership?

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Question: What is the primary disadvantage of a partnership?

Options:

  1. Limited access to capital
  2. Shared decision-making
  3. Unlimited liability
  4. Lack of formal structure

Correct Answer: Unlimited liability

Solution: 

The primary disadvantage of a partnership is that partners have unlimited liability for business debts.

What is the primary disadvantage of a partnership?

Practice Questions

Q1
What is the primary disadvantage of a partnership?
  1. Limited access to capital
  2. Shared decision-making
  3. Unlimited liability
  4. Lack of formal structure

Questions & Step-by-Step Solutions

What is the primary disadvantage of a partnership?
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