Which of the Following Are Disadvantages of the Partnership Form

question 129

Multiple Choice

Which of the following are disadvantages of the partnership form of ownership?

• A) Personal liability and double taxation.
• B) Personal liability and limited firm life.
• C) Double taxation and limited firm life.
• D) Ease of formation and unlimited firm life.
• E) Ease of formation and ease of ownership transfer.

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Definitions:

Offshore Partnerships

Financial or business arrangements made in jurisdictions with favorable tax laws to maximize profit and minimize tax liability.

Technological Competence

Technological competence involves the knowledge, skills, and abilities to effectively use technological tools and processes in a specific domain or activity.

Fiduciary Relationship

A legal relationship in which one party, the fiduciary, is obligated to act in the best interest of another party, typically in financial or property matters.

Expulsion from the Firm

The act of formally removing a partner or member from a business or professional practice due to misconduct or breach of agreement.