Franklin, John, Henry, and Harry have decided to pool their financial resources and business skills in order to open up and run a coffee shop. They will share any profits or losses that the business generates and will be personally responsible for making good on any debt that their business undertakes.

Question

Pockets

Business

22 May, 17:25

Franklin, John, Henry, and Harry have decided to pool their financial resources and business skills in order to open up and run a coffee shop. They will share any profits or losses that the business generates and will be personally responsible for making good on any debt that their business undertakes.

+1

Answers (1)

Know the Answer?

Madeleine Mcclain · Answer 1

A) Partnership

Explanation:

A partnership is a type of business where two or more people (called partners) come together and form one single company. The main advantages of forming a partnership are:

partnerships are easy to set up since more than one person is involved, a partnership can gather more capital the talents of the partners are shared the partnership is not taxed directly, it is a pass through entity where the partners are taxed directly

The main disadvantage of forming a partnerships is that the partners are personally liable for all the partnership's debts and obligations.