Which of the following is a disadvantage of a partnership?

A partnership involves multiple individuals who come together to run a business, sharing both the profits and the responsibilities. One notable disadvantage of this structure is that partners typically share liabilities for the business's debts. This means that if the business incurs debt or faces legal issues, all partners may be held personally liable for the full extent of those debts, not just their individual share.

This shared liability can put personal assets at risk for all partners involved, which can create significant financial exposure. Unlike a corporation, where shareholders enjoy limited liability and their personal assets are typically protected from the business’s debts, partners in a partnership must be prepared to bear the financial burden collectively.

On the other hand, accessing additional funding, limited liability (in specific types of partnerships), and increased resources and skills are typically seen as advantages rather than disadvantages. These factors often draw individuals toward forming partnerships in the first place, as they can capitalize on pooled resources and diverse expertise.