1. each partner is fully responsible for the acts of all other partners
2. limited partnership where investor's responsibility for the debts of the business is limited by the size of his or her investment in the firm
3. the potential for conflict between parners
describe the difference between a horizontal and a vertical merger
Horizontal: takes place when two or more firms that produce the same kind of product join forces. "banks merging"
Vertical: when firms involved in different steps of manufacturing or marketing join together. "tire company and automaker merging"