Isaac starts a consulting firm with his friend Arnie. They decide to equally share the profits and have unlimited liability for the debts of their business. Such unlimited liability can be a distinct disadvantage for Isaac if he has

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In general partnerships, like this one, the general partners have unlimited liability for the debts incurred by the business. This can be a distinct disadvantage to one partner if his or her personal financial resources are greater than those of others. A potential partner should make sure that all partners have comparable resources to help the business in time of trouble.

Isaac Starts a Consulting Firm with His Friend Arnie