Final answer:
Neither Lawyer A nor Lawyer B should represent the friends due to a potential conflict of interest within the same firm. Thus, the correct answer is 'None of the above'. Partnerships have disadvantages including shared responsibility and limited life.
Step-by-step explanation:
In the scenario where two long-term friends are dividing their assets from a failed partnership venture and each approach a different lawyer within the same firm, it can create a conflict of interest. Generally speaking, neither Lawyer A nor Lawyer B should represent the friends if they are from the same firm, as it would be a breach of ethical guidelines to represent clients with opposing interests in the same matter. Therefore, the correct answer is 4) None of the above.
The main disadvantages of partnerships in business include the fact that partners are responsible for each other's acts, and the partnership's limited life. When there's a change in the partnership structure due to a partner leaving or passing away, the business itself may change, even if the name remains the same.