DE12-2 Timothy Lane and Sam Medford are forming a business to imprint T-shirts. Lane suggests that they organize as a partnership in order to avoid the unlimited personal liability of a proprietorship. According to Lane, partnerships are not very risky. Lane explains to Medford that if the business does not succeed, each partner can withdraw from the business, taking the same assets that he or she invested at its beginning. Lane states that the main disadvantage of the partnership form of organization is double taxation: First, the partnership pays a business income tax: second, each partner also pays personal income tax on his or her share of the business's profits. Correct the errors in Lane's explanation.