The major disadvantage of a general partnership is:
A)each partner is fully responsible for the liabilities incurred by the partnership.
B)it is difficult to raise equity capital.
C)the costs of forming the partnership are high.
D)profits are taxed double.

Question

Quizplus · Accepted Answer

The major disadvantage of a general partnership is that each partner is fully responsible for the liabilities incurred by the partnership. This means that if the partnership cannot meet its obligations, the partners can be held personally liable for any debts or liabilities. This can have serious financial consequences for the individual partners, as their personal assets may be at risk.

The Major Disadvantage of a General Partnership Is