Which of the Following Are Disadvantages of a Partnership

question 20

Multiple Choice

Which of the following are disadvantages of a partnership?
I.limited life of the firm
II.personal liability for firm debt
III.greater ability to raise capital than a sole proprietorship
IV.lack of ability to transfer partnership interest

• A)I and II only.
• B)III and IV only.
• C)II and III only.
• D)I, II, and IV only.
• E)I, III, and IV only.

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Definitions:

Accounting Period

The time period covered by the financial statements.

Maturity Value

The amount payable to an investor at a security's maturity date, including both the principal and any final interest payments.

Bonds

Long-term debt instruments issued by corporations or governments to raise capital, with the issuer promising to pay back the principal along with interest on specified dates.

Annual Interest Payment

the amount of money paid in interest to lenders or bondholders over the course of a year.