The Disadvantages of the Partnership Form of Business Organization, Compared

question 17

Multiple Choice

The disadvantages of the partnership form of business organization, compared to corporations, include

• A) the legal requirements for formation.
• B) unlimited liability for the partners.
• C) the requirement for the partnership to pay income taxes.
• D) the extent of governmental regulation.
• E) the complexity of operations.

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Definitions:

Hold-Off Pressure

The pressure needed to prevent a fluid or gas from moving forward or leaking in a system.

Spring Brake Circuit

A pneumatic brake system component that uses compressed air acting on a spring to apply braking force.

Pneumatic Rivet Gun

A tool powered by compressed air used to drive rivets, typically used in metalwork and manufacturing.