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.

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Definitions:

Communicative Disease

Loneliness and social isolation resulting from the absence of heartfelt communication in relationships.

Computer-Mediated Communication

The exchange of messages between individuals through digital devices, allowing for interaction without being physically present.

Channel Etiquette

The set of behavioral norms and expectations governing communication channels, ensuring respectful and effective exchange of information.

Self-Promotion

The act of highlighting one's own abilities and successes to advance one's career or social standing, often in a strategic manner.