It is a widespread form of company in smaller, low-risk business areas.
For more economically-risky ventures, an AS would be preferable, as the personal financial losses in the event of a bankruptcy would be limited to the capital invested: a bankrupted AS with a 2 million NOK debt, the investors would stand to lose the invested capital, for instance 100 thousand NOK.
In the case of several owners, if one is unable to pay, the entire sum would be collected from the others.
By using a selskap med delt ansvar (DA), with two investors and a 50% liability share, each would be liable for 50% of the debt, and if one should be unable to pay (in the case of personal bankruptcy), the other would still have to carry no more than the 1 million NOK debt.
A business does not need to include the abbreviation for its type in its day-to-day operations, but it is required to register this in its legal name.