In Comparison to a Company, a Disadvantage of Operating as a Partnership

question 57

Multiple Choice

In comparison to a company, a disadvantage of operating as a partnership is:

• A)unlimited liability.
• B)limited life.
• C)mutual agency.
• D)all of the above.

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Definitions:

Prove

To demonstrate the truth or existence of something through evidence or argument.

Undue Influence

Improper or unlawful pressure exerted on a person, compelling them to act against their will or to give up a legal right.

Dependent Party

An individual or entity that relies on another for support, often used in legal contexts to determine responsibilities or benefits.

Trust

A fiduciary relationship in which one party, known as a trustee, holds property or assets for the benefit of another party, the beneficiary.