Which of the Following Is One of the Disadvantages of a Partnership

question 23

Multiple Choice

Which of the following is one of the disadvantages of a partnership?

• A)Unlimited liability of partners
• B)Lack of formalities
• C)Limited to not-for-profit
• D)Separate legal personality

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Definitions:

Charging Order

A court’s order granting rights in a partner’s transferable interest to a personal creditor of the partner; a creditor with a charging order is entitled to the partner’s share of partnership distributions.

Transferable Partnership Interest

The aspect of a partner's share in a partnership that can be transferred or sold to another party, subject to the partnership agreement.

Judgment

A formal decision or conclusion by a judge or court at the end of a lawsuit.

Legal Partnership

A business structure where two or more individuals manage and operate a business in accordance with the laws and regulations, sharing profits and liabilities.