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:

Mediate Conflicts

The process of intervening in a dispute in order to resolve it or reduce its intensity, often by finding a mutually acceptable solution.

Effective in Jobs

Describes the ability to fulfill job duties in a competent and proficient manner, often leading to successful outcomes and achievements.

High Need for Affiliation

A personality trait characterized by a strong desire to develop and maintain social relationships and to be part of groups.

Allocate Scarce Resources

The process of distributing limited resources among competing needs or users in order to achieve desired outcomes.