What are the Disadvantages of a General Partnership?
- Unlimited Liability: Each partner is personally liable for the business debts and obligations, which means personal assets can be at risk. - Management Disputes: Differences in management style or business vision can lead to conflicts among partners. - Limited Life Span: The partnership may dissolve if one of the partners withdraws or passes away. - Profit Sharing: Profits are shared among all partners, which can sometimes lead to unequal distribution if contributions vary.