Question

Zeus is considering running a business. He likes the idea of taking on a partner to share in the upstart costs. What are the risks of a partnership?
The biggest risk of a partner is that they share ____ (choices: profits, political ideals, office space) and ____ (choices: stockholders, losses, administrative assistants)

Answer 1

Answer:

profits; losses.

Explanation:

A partnership can be defined as a type of business ownership in which two or more individuals come together to start up a business and share the profits made together.

Basically, there must be mutual understanding and assent between the parties involved in the establishment or creation of a partnership form of organization (business).

Additionally, a partnership form of business is considered to be one of the easiest type of business to start up or form once there is an agreement between two or more individuals to establish a lawful and legal business.

However, the biggest risk of a partnership is that they share profit and losses. Also, partners in a partnership form of business are liable to lawsuits, debts owed to creditors and lawsuits with respect to the business.