Which of the following is a disadvantage of a partnership?

• A. Shared burden
• B. Easy to set up
• C. Profit is shared
• D. Any partner's decision is legally binding

Answer: (D)

In a partnership, decisions made by any partner can legally bind the business. This means one partner can commit the whole partnership to contracts, obligations, or actions even if the other partners disagree or haven’t been involved in the decision. That creates a real disadvantage because it exposes all partners to potential financial risk and liability for those commitments, not just the individual who made the decision. It also can lead to conflicts or disputes when partners have different ideas about the best course of action. By contrast, the other statements describe positives of a partnership—sharing workload, being relatively easy to set up, and sharing profits—so they aren’t disadvantages.