What is one major difference between a partnership and a corporation?


Owners see no difference, they are almost the same type of businesses.

Owners have hidden risks in a partnership.

Owners have more risk in a corporation.

Owners have more risk in a partnership.

One major difference between a partnership and a corporation is that in a partnership, the owners have unlimited personal liability for the debts and liabilities of the business, while in a corporation, the owners (shareholders) have limited liability. This means that in a partnership, the personal assets of the owners can be used to settle business debts, while in a corporation, the personal assets of the shareholders are typically protected from business debts.