Which of the Following Is Not an Advantage of Partnerships

question 50

Multiple Choice

Which of the following is not an advantage of partnerships.

• A)Ease of formation
• B)Income is taxes only once
• C)Owners' manage the firm
• D)Limited Liability

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Definitions:

Retained Earnings

Accumulated net income that has been retained by a company rather than distributed to its owners as dividends.

Shareholders

Individuals or entities that own shares in a corporation, giving them ownership interest in the company.

Cost Method

An accounting method used to record investments, where the investment is recorded at its acquisition cost without adjusting for changes in market value.

Investment Account

An Investment Account is a financial account held by an investor with a brokerage firm, bank, or custodian that holds securities and other investments.