Which One of the Following Would Not Be Considered a Disadvantage

question 204

Multiple Choice

Which one of the following would not be considered a disadvantage of the partnership form of organization?

• A) Limited life
• B) Unlimited liability
• C) Mutual agency
• D) Ease of formation

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Definitions:

Straight-Line Depreciation

A strategy for spreading out the cost of a material asset through equal yearly payments over its period of usability.

Yearly Depreciation Expense

The amount of the cost of tangible assets apportioned for a specific fiscal year using methods like straight-line depreciation.

Depreciable Cost

The total cost of a tangible asset minus its estimated residual value, over which the cost is allocated during its useful life.

Double-Declining-Balance Method

An accelerated depreciation method that doubles the straight-line depreciation rate, applying it to the remaining book value of an asset each year.