GCECommerceBusiness Organisations2019

A major disadvantage of a partnership over a sole proprietorship is that

Apartners cannot raise more capital than a sole trader
Bpartners are jointly and severally liable for the firm's debtsCORRECT
Ca partnership cannot sue or be sued in its own name
Dpartners are unable to specialise in different aspects of the business
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Why the answer is B, and why the others tempt you.
In a partnership, each partner can be held fully responsible for the entire debts of the firm, including debts incurred by other partners in the course of business. This joint and several liability is a significant disadvantage compared to a sole proprietorship where only one person's assets are at risk.
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