Question
A disadvantage of forming a partnership is that owners
can find it tougher to start and stop a business.
can find it more difficult to get a bank loan.
are only responsible for their own finances.
are fully responsible for their partners' losses.
can find it tougher to start and stop a business.
can find it more difficult to get a bank loan.
are only responsible for their own finances.
are fully responsible for their partners' losses.
Answers
GPT-4o mini
A disadvantage of forming a partnership is that owners **are fully responsible for their partners' losses**. In a partnership, each partner typically shares liability for the debts and obligations of the business, which means that one partner can be held responsible for the financial losses or liabilities incurred by other partners. This poses a significant risk, especially if one partner is not managing the business responsibly.