Which of the Following Is Recognized as a Disadvantage of Partnerships

question 81

Multiple Choice

Which of the following is recognized as a disadvantage of partnerships?

• A)ease of formation
• B)possible tax advantages
• C)direct rewards
• D)lack of continuity

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Definitions:

Total Current Liabilities

The sum of all liabilities of a company that are due within one year, including accounts payable, short-term loans, and other short-term financial obligations.

Assets

Resources owned by a person or business that have economic value and can provide future benefits.

Inventory Turnover Ratio

Indicates how many times a company's inventory is sold and replaced over a certain period, calculated by dividing cost of goods sold by average inventory.

Inventories

Raw materials, work-in-process products, and completely finished goods that are considered to be the portion of a business's assets that are ready or will be ready for sale.