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"Education is the most powerful weapon which you can use to change the world”
– Nelson Mandela

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CH 37 Limited Partnerships 1 Assignment

Ch 37 Limited Partnerships 1 Assignment

Q 1) Referring to the disadvantages of sole proprietorships versus other forms of doing business , how does the regular partnership form of doing business affect those disadavantages? 2) Which do they solve and which remain a problem? 3) How would a Limited Partnership help solve those disadvantages? 4) In what ways a limited partners limited versus regular partners?

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The way in which money is raised in case of a sole proprietorship is difficult because the scope is limited to the investing and the risk-taking capacity of the individual (Clarkson, Miller & Cross, 2016). Moreover, the capacity of taking loans from unknown people is also limited because chances are high only to receive loans from known people. The liability of the proprietor in case of a sole proprietorship is unlimited. This implies that the business and the proprietor are not different in terms of measuring liability.