I thought this question is asking what are the considerations to choose legal entity structure, and Level of risk would be the one of the most important thing. LLP, LLC, C-corporation etc.
for example, C corporation & LLC would protect each individuals, but LLP might not protect firm itself although it protects each partner from the liability.
And Why answer 1 should be the correct one? ‘Whether resources will be pooled between partner’ sounds like ethic and morale in the workplace.
Are there companies that don’t share data while working as partners? If so, why do they partner? Can’t we just run their own company?