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JAMB Economics 2013 Question 42

Question 42

Business Organisations

A major disadvantage of partnership business is

  1. A.difficulty in the transfer of shares.
  2. B.distrust among members.
  3. C.limited liability.
  4. D.large capital outlay.
Show the answer and explanation

Answer: B (distrust among members.)

Explanation

Partners often disagree or lose trust in each other, which can break up the business.