A Disadvantage of a General Partnership, Compared to a Regular

question 28

Multiple Choice

A disadvantage of a general partnership, compared to a regular corporation, is that:

• A) There are more formalities and costs in establishing partnerships.
• B) Partnership income is subject to double taxation.
• C) Partners are subject to unlimited liability for debts of the business.
• D) Partnerships must obtain charters from the state they are established in.

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Definitions:

Developing Products

The process of creating new products or improving existing ones to meet market demand or exploit new market niches.

Test Marketing

The process of launching a product in a limited market to gauge consumer response before a full-scale launch, used to predict product success and refine marketing strategies.

Low-Carb Juice

A beverage product designed to contain low amounts of carbohydrates, catering to individuals following low-carb diets for health or weight loss reasons.

Diffusion

The process by which an innovation is communicated through certain channels over time among the members of a social system.