For which type of organization is unlimited liability likely to be the greater problem-proprietorships or partnerships? Why?

What will be an ideal response?

ANSWER:

Unlimited liability probably poses more problems for partnerships because each partner is liable for debts incurred by the firm, even if those debts are incurred by the other partner. A proprietor knows all the debts he or she has taken on, but a partner could be in the dark on some occasions.