What is a potential risk involved when a general partner leaves or passes away?

When a general partner leaves or passes away, a potential risk is that the business may dissolve. This is because partnerships, especially general partnerships, often depend on the individual partners' contributions, skills, and relationships. The departure or death of a general partner can lead to a lack of continuity and stability within the business.

Many partnerships are formed under agreements that specify how the business should be managed and what happens in the event of a partner's exit. If there are no provisions for such scenarios, the partnership may automatically dissolve, leading to significant operational and financial challenges. Among these challenges, there may include the disruption of ongoing projects, loss of client trust, and potential legal complications regarding ownership and profits.

The other options do not align with the implications of a general partner's exit. Enhanced profitability, increased capital resources, and decentralized decision-making are typically not direct outcomes of a partner leaving, as the stability and interpersonal relationships within the partnership are usually affected negatively in such a scenario.