Question

question 34 exercises - entrepreneurship: going from an idea to a business if one owner of a partnership makes a bad decision that ends up in the business being sued, then a) that person faces liability. b) the partnership is dissolved. c) all partners are protected. d) they all lose their stock. e) all partners face unlimited liability.

Explanation:

In a general partnership, each partner has unlimited liability for the actions and debts of the partnership. If one partner makes a bad decision leading to a lawsuit, all partners are personally liable (unlimited liability) for the business's obligations. Option A is incorrect as liability isn't just for the one partner. Option B is wrong because a single bad decision doesn't dissolve the partnership. Option C is incorrect as partners aren't protected. Option D is wrong as partnerships don't have stock (that's for corporations). So the correct answer is E.

Answer:

E) all partners face unlimited liability.