Final answer:
A common risk with partner contributions based on intangible assets is opportunistic behavior, potentially leading to misrepresentation of resources or an imbalance within the partnership. Partnerships share risks and responsibilities, with personal liability being a concern in general partnerships, while limited liability partnerships offer personal asset protection.
Step-by-step explanation:
When a partner's contribution to a partnership is based on its intangible assets, a common risk is that the firm may behave in an opportunistic manner. This might include misrepresenting the resources it can bring to the partnership, seeking to acquire as much of its partner's tacit knowledge as possible, or making investments specific to the alliance while the partner does not, potentially leading to an imbalance within the partnership.
Partnerships come with shared responsibilities and risks. While they are relatively easy to manage and can attract investors, they also require that each partner is responsible for all of the business's debts and, in some arrangements like a general partnership, may result in personal liability for the owners. This could lead to losing personal assets in case of bankruptcy or a lawsuit.
However, a limited liability partnership offers the advantage of limiting the partner's liability to their investment in the company, protecting personal assets. Startups and young firms often face risks of misrepresentation due to imperfect information, a gap that angel investors and venture capitalists attempt to bridge by forming personal connections with the founders and understanding their business plans.