Which of the Following Is NOT an Advantage of a Partnership

question 1

Multiple Choice

Which of the following is NOT an advantage of a partnership?

• A) Partners' income taxes may be less than the income taxes would be on a corporation.
• B) Each partner has limited liability.
• C) It is possible to bring together more managerial skills than in a sole proprietorship.
• D) It is possible to bring together more capital than in a sole proprietorship.

---

Definitions:

Estimated Overhead Cost

Estimated overhead cost refers to a projection or forecast of the total indirect expenses that will be incurred during a specified period in the production process.

Internal Failure Cost

Costs incurred due to defects that are identified before the products are shipped to customers, including scrap and rework costs.

Quality Training

Educational programs and initiatives focused on improving the quality of products, services, and processes within an organization, often aimed at enhancing customer satisfaction.

Scrap Costs

Expenses associated with the disposal of waste materials or byproducts produced during the manufacturing process.