All of the Following Are Advantages of a Partnership Except

question 42

Multiple Choice

All of the following are advantages of a partnership except:

• A) Division of Profits
• B) Larger Pool of Capital
• C) Capital Accumulation
• D) Easy to Establish

---

Definitions:

Long-Term Debt

Borrowings and financial obligations that are due for repayment beyond one year's time, often used for major investments or acquisitions.

Profit Margins

Financial ratios that measure the percentage of profit a company generates from its revenues, indicating the efficiency at which a company converts sales into profits.

Asset Turnover Ratios

Asset turnover ratios measure how efficiently a company uses its assets to generate sales, indicating operational efficiency.

Financing Policies

These are strategies that a company formulates for managing its finances, including decisions on debt, equity, and internal financing methods.