Compared to Corporations, What Is the Primary Disadvantage of Partnerships

question 58

Multiple Choice

Compared to corporations, what is the primary disadvantage of partnerships as a form of business organization?

• A)The tax rates applied to partnerships are higher than the tax rates applied to corporations.
• 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 more complex to form (start up) than corporations.
• D)Partnerships have unlimited lives whereas corporations 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 corporation have limited liability.

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Definitions:

Computed Tomography

A medical imaging technique that uses computer-processed combinations of multiple X-ray measurements taken from different angles to produce cross-sectional images of specific areas of a scanned object.

Computed Tomography

A diagnostic imaging procedure that uses computer-processed combinations of many X-ray measurements taken from different angles to produce cross-sectional images of specific areas of a scanned object.

Magnetic Resonance Imaging

A noninvasive medical imaging technique used to visualize detailed internal structures of the body using magnetic fields and radio waves.

Positron Emission Tomography

A medical imaging method employing radioactive materials to observe and quantify variations in metabolic activity, as well as alterations in blood circulation, local chemical makeup, and uptake.