Which of the Following Is a Disadvantage of Partnership Firms

question 5

Multiple Choice

Which of the following is a disadvantage of partnership firms?

• A)These cannot be dissolved without the permission of SEC.
• B)These are taxed at multiple levels: corporate level and individual level.
• C)These have more difficulty in raising capital as compared to a sole proprietorship.
• D)These have a mutual agency which creates personal obligations for each partner.

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Definitions:

New-product Development

The process of designing, creating, and bringing a new product to market to meet consumer demand or exploit a new opportunity.

Generate Sales

The act of creating revenue through the selling of goods or services to customers.

Defective

Refers to a flaw or imperfection in a product that impairs its usability for the purpose for which it was designed or manufactured.

Revamped Product

A product that has new packaging, different features, and updated designs and functions.