A Disadvantage of Both Proprietorships and Partnerships Is That

question 22

Multiple Choice

A disadvantage of both proprietorships and partnerships is that

• A) in each, profit is taxed twice, as the income of the firm and the income of the owners.
• B) the owners cannot hire managers to help run the firms.
• C) the firms cannot pay dividends.
• D) the owners have unlimited liability for the debts of the firms.

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Definitions:

Deny Responsibility

The act of refusing to accept blame or acknowledge one's role in a particular situation or outcome.

Consumer Protection

Laws and policies designed to safeguard consumers from unfair, deceptive, or fraudulent practices in the marketplace, ensuring their rights are protected.

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Corporate Social Responsibility

The practice of businesses actively engaging in initiatives that positively impact society, the environment, and their stakeholders beyond what is legally required.