Which of the Following Statements Is Correct

question 1

Multiple Choice

Which of the following statements is correct?

• A) In a partnership,liability for other partners' misdeeds includes but is limited to the amount a particular partner has invested in the business.
• B) Partnerships must be formed according to specific rules which include the filing of a formal written agreement with state authorities where the partnership does business.
• C) A fast growth company would be more likely to set up a partnership for its business organization than would a slow-growth company.
• D) Partnerships have difficulties attracting capital in part because of the other disadvantages of the partnership form of business,including impermanence of the organization.
• E) A major disadvantage of a partnership as a form of business organization is the high cost and practical difficulties of its formation.