write in word (text)

Mr. Adel decided to start a small business with his friends Mr. Yusuf, Mr. Fahad, and Mr. Omar. Mr. Adel and Mr. Yusuf chose to run the business. Both of them will be liable for the business debts. If the business goes bankrupt or in loss, they have to search into their own pockets to pay to the creditors. But Mr. Fahad and Mr. Omar decided not to be involved in managing the business. It was also decided that Mr. Fahad and Mr. Omar's will not be responsible for any loss in the business. They will lose only the invested capital. a) Explain the type of business ownership discussed in the above situation and discuss your opinion on the possible advantages and disadvantages of adopting such form of business ownership. b) Explain the type of liability of the four partners in the above scenario with appropriate reasons