Some people with substantial assets may hesitate to enter a partnership.
They don't want to lose some or all of these assets because of the mistakes of other
partners.To offset this possible loss they can form an unlimited partnership.

Question

Quizplus · Accepted Answer

Forming an unlimited partnership means that each partner is personally liable for all the debts and obligations of the business, which increases the risk of losing personal assets. To offset the potential loss, a limited partnership or limited liability partnership may be a better option for those with substantial assets.

Some People with Substantial Assets May Hesitate to Enter a Partnership