What is a main risk of structuring a business as a partnership?

Structuring a business as a partnership inherently involves shared responsibility among partners, which extends to assuming liability for one another's debts or losses. This means that if one partner incurs debt or faces legal issues, all partners can be held accountable. This shared liability can put personal assets at risk, making it a significant concern for those considering a partnership structure.

In partnerships, each partner's actions can directly impact the financial health of the business and the liability burden shared among all members. Understanding this risk is crucial for anyone considering forming a partnership, as it emphasizes the importance of trust and the need for clear agreements regarding each partner's responsibilities and contributions to the business.

Other choices reflect concerns that may exist but do not encapsulate the primary risk associated with partnerships, which lies in the shared liability aspect. For instance, limited access to funding can be an issue for any business structure, but it’s not uniquely problematic for partnerships. Similarly, lack of control and difficulties in decision-making can occur in various business models and do not define the inherent risks of partnerships as clearly as the liability issue does.