Compared to Companies, What Is the Primary Disadvantage of Partnerships

question 30

Multiple Choice

Compared to companies, what is the primary disadvantage of partnerships as forms of business organisations?

• A) The tax rates applied to partnership are higher than the tax rates applied to companies.
• B) Any dividends paid to the owners of a partnership business are taxed twice-once at the partnership level and once at the personal, or individual level.
• C) Partnerships generally are much easier to form (start up) than companies.
• D) Partnerships have unlimited lives whereas companies do not.
• E) The owners of a partnership-that is, the partners-have unlimited liability when it comes to business obligations whereas the owners of a company have limited liability.

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Definitions:

Dissociative Disorders

Mental disorders that involve disruptions or disconnections in consciousness, identity, memory, or perception.

Conscious Awareness

Conscious awareness refers to the state of being awake and aware of one's thoughts, feelings, and surroundings.

Dissociative Disorders

A category of mental disorders characterized by a disconnection and lack of continuity between thoughts, memories, surroundings, actions, and identity.

Sense Of Identity

The way an individual perceives themselves, which is influenced by their beliefs, personality traits, and experiences.