Final answer:
The statement that a partner in a general partnership has the same profit-sharing, loss-sharing, and capital-sharing ownership percentages is false. The allocation of these percentages is determined by the partnership agreement and can vary among partners, allowing for flexibility based on each partner's contribution and negotiated terms.
Step-by-step explanation:
To answer the question of whether a partner will have the same profit-sharing, loss-sharing, and capital-sharing ownership percentages, false is the correct selection. While a general partnership implies shared responsibilities, the exact division of profits, losses, and capital contributions might vary and is determined by the partnership agreement. The partners can agree to allocate profits and losses in a manner that does not necessarily match their capital contributions. This allows for flexibility based on each partner's investment, involvement, and negotiated terms.
For instance, one partner may contribute more capital and agree to receive a larger share of the profits, while another may contribute specialized skills or labor, which compensates for a lesser capital contribution with a higher profit share. Therefore, the statement that a partner will have the same profit-sharing, loss-sharing, and capital-sharing ownership percentages is not universally true.
The disadvantages of General Partnership include sharing in profits, responsibility for all of the business's debts, and personal liability, which can lead to the loss of personal assets in the case of bankruptcy or a lawsuit. Partnerships require a clear agreement regarding decision-making responsibilities and conditions for the dissolution of the partnership, such as upon the death or departure of a partner.