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Terry
0450-20-M-J-11-4c
Chan
TOPIC QUESTION - PAPER 1
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Chan
May 30, 2021 at 6:50:44 AM
May/June 2020
Version 1
1.0 Understanding Business Activity
1.4 Types of Business Organization
YOUR ANSWER
Disadvantage 1: Business partnerships are not incorporated, therefore they are not a separate entity from the owners. As such, both brothers will have to pay all debts with their personal asset should BMT make a lost.
Disadvantage 2: Partners may quarrel. This may affect business performance when partners cannot agree and take a long time to make a decision even when demand for BMT watches increases.
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