1) Assume you and your best friend set up a partnership and your lawyer tells you that as the owners, you could each stand to lose your personal wealth if the business goes bankrupt. This means a partnership.

A) faces limited liability.

B) faces unlimited liability.

C) has little chance of succeeding.

D) is not a good type of business to set up.

Exp: This would be a limited liability because your business and personal assets should be separated. While your best friend might go bankrupt you should have something to fall back on. If you were the one that set the partnership up you would be going bankrupt.