Scenario 10-3. Mary Manting is opening her new business. She is offering a day camp/day care summer experience for a newly developed suburb in upscale Yolando. She has little capital and little management experience, and she is concerned with the possibility of lawsuits due to the nature of her business and the unlimited liability that she could then face. She comes to you for business advice.
-In Scenario 10-3, what would be the major advantage of establishing her business as a general partnership?

Question

Quizplus · Accepted Answer

A general partnership allows for the pooling of talents and resources, which can be a significant advantage, especially for a business owner with limited capital and management experience. This structure enables partners to share responsibilities, expertise, and possibly financial resources, which can help in managing the business more effectively and potentially mitigating risks associated with the business operation.