Which of the Following Is a Significant Disadvantage of a General

question 67

Multiple Choice

Which of the following is a significant disadvantage of a general partnership?

• A) The cost of forming it is high.
• B) Each partner is fully responsible for the liabilities incurred by the partnership.
• C) There is a risk associated with the industry in which it operates.
• D) Forming the business is very complex.

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Definitions:

Harsh Treatments

Approaches or methods that are overly strict, severe, or cruel when dealing with others or in response to problems.

Motivational Potential

The capacity of a task, job, or situation to induce an individual to exert effort towards achieving a goal.

Profit Sharing

An incentive program where employees receive a share of the company's profits, reflecting their contribution to its success.

Weak Economy

A state where a country's overall economic performance is poor, characterized by low growth, high unemployment, and declining business activities.