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.

Identify the appropriate steps for supervisors to take when managing employee misconduct and performance issues.

Recognize the importance of documentation in the disciplinary process.

Distinguish between discipline and punishment and understand their implications for managing employees.

Understand the role and process of employee assistance programs (EAPs) in addressing personal problems affecting work.

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Definitions:

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations by comparing its current assets to its current liabilities.

Disclosure Requirements

Regulations or standards mandating companies to reveal certain financial and non-financial information to maintain transparency and inform stakeholders.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board for financial reporting globally.

Party Affiliation

The formal association or identification of an individual with a political party, often influencing voting behavior and political perspectives.