Question

What type of business organization has the advantage of specialization but the disadvantage of unlimited liability? A) corporation B) sole proprietorship C) partnership D) oligopoly

Answer 1

B sole proprietorship

Answer 2

Answer:

C) partnership

Explanation:

General partnerships can usually offer specialized goods or services. A partnership is a type of business where 2 or more partners work together and share profits, but they also share unlimited liability towards the partnership's debts and obligations.

The problem with unlimited liability is usually solved by forming a limited liability partnership (LLP) or a limited liability company (LLC).