Key Disadvantages of Partnerships Over Sole Trader

Steps:

• Identify core features: Sole traders have full control and bear all liability alone; partnerships involve shared ownership.
• List common disadvantages: (1) Unlimited joint liability exposes partners to others' debts; (2) Shared decision-making reduces individual autonomy; (3) Profits split among partners, lowering personal returns.
• Compare directly: Each point worsens position versus sole trader's sole benefits.
• Conclude selection: All three apply, so option A includes everything.

Why A is correct:

• Partnerships disadvantage sole traders via joint liability (legal sharing of unlimited debts), decision conflicts (partnership agreement mandates), and profit division (equity split per agreement).

Why the others are wrong:

• B excludes 3, but profit sharing reduces earnings potential.
• C excludes 2, but shared control limits independence.
• D excludes 1, but joint liability increases personal risk.

Final answer: A