Compared to Corporations, What Is the Primary Disadvantage of Partnerships

question 20

Multiple Choice

Compared to corporations, what is the primary disadvantage of partnerships as forms of business organizations?

• A)The tax rates applied to partnership are higher than the tax rates applied to corporations.
• B)Any dividends paid to the owners of a partnership business are taxed twice, once at the partnership level and once at the personal, or individual level.
• C)Partnerships generally are much easier to form (start up) than corporations.
• D)Partnerships have unlimited lives whereas corporations do not.
• E)The owners of a partnership, that is, the partners, have unlimited liability when it comes to business obligations whereas the owners of a corporation have limited liability.

---

Definitions:

Strategic Connection

A purposeful relationship or partnership formed to achieve mutual benefits and align with strategic goals.

Controversial

Referring to something that is likely to give rise to public disagreement or debate.

Find Purpose

The process of discovering a meaningful direction in personal or organizational activities that contributes to broader societal or communal goals.

Global Communications

Strategic communications and actions carried out by private, government, or nonprofit organizations to build and maintain relationships in social and political environments outside their home location.