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:

Sidney Homer

A notable economist and author recognized for his work in the fields of bond markets and interest rates.

Harry Markowitz

An American economist known for his pioneering work in modern portfolio theory, emphasizing diversification and risk management in investing.

Interest-Rate Sensitivity

A measure of how much the value of an investment or a portfolio will change in response to a change in interest rates.

Bond Prices

The cost at which a bond is trading, which can fluctuate based on interest rates, the bond's credit quality, and other factors.