A Disadvantage That Is NOT Peculiar to the Partnership Form

question 57

Multiple Choice

A disadvantage that is NOT peculiar to the partnership form of organization includes

• A) each partner is individually liable for all of the debts of the partnership.
• B) the interest of a partner in the partnership cannot be transferred without the consent of the other partners.
• C) termination of the partnership agreement, bankruptcy of the firm, or death of one of the partners dissolves the partnership.
• D) the partners do not make the decisions that run the business.

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Definitions:

Checks and Balances

A system that allows each branch of a government to amend or veto acts of another branch to prevent any one branch from exerting too much power.

President Veto

A presidential veto is the power of the president to refuse approval of legislation passed by Congress, which can be overridden only by a two-thirds vote in both the House and the Senate.

Congress

The United States federal government's legislative body, composed of the Senate and the House of Representatives.

Presumption of Innocence

The legal principle that one is considered innocent until proven guilty in a court of law.