Bob, Frank and Jane are equal partners in a lawn-care business. Frank and Jane wanted the partnership to borrow some money from the bank to buy more equipment for the business. Bob was against the idea. When called to a vote, Frank and Jane voted yes. Bob voted no.

Will Bob be held responsible on the loan? Can Frank and Jane exclude Bob from the loan proceeds? If the business fails, can the lender sue Bob? How has this unit and Bob's dilemma influenced your thoughts about partnerships as a business structure? Do partnerships represent a greater risk than a sole proprietorship? Why or why not?