Which One of the Following Is a Disadvantage of a Partnership

question 151

Multiple Choice

Which one of the following is a disadvantage of a partnership?

• A) Double taxation.
• B) Ability to raise capital as compared to a sole proprietorship.
• C) Growth limitations due to the inability to raise investment capital.
• D) The debt obligations of a limited partner.
• E) Complexity and cost of partnership formation.

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Definitions:

Rock Formation

The process by which geological forces lead to the creation of rock structures, through mechanisms like cooling of magma, sedimentation, and metamorphism.

Lithosphere

Earth’s upper, rigid layer composed of the crust and uppermost mantle.

Continental Crust

The thick layer of granite, sedimentary, and metamorphic rocks that forms the continents and continental shelves, distinct from oceanic crust.

Oceanic Crust

A thin layer of Earth's crust that lies beneath the ocean basins, composed mainly of basalt.