All of the Following Are Advantages of Partnerships Except One

question 131

Multiple Choice

All of the following are advantages of partnerships except one.Which is the exception?

• A)They are relatively easy to start.
• B)Their profits are taxed once as personal income.
• C)Their liability is limited by each partner's share of the business.
• D)They offer a greater opportunity for specialization by the owners.
• E)They enable continuation of the firm if one partner dies.

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Definitions:

Subsidiary

A company controlled by another company, often referred to as the parent company.

Acquisition

The process or act of obtaining control, possession, or ownership of a company or assets by purchasing or merging with it.

Consolidation

A combination of two or more businesses in which all of the old legal entities dissolve and a new one with a new name is formed to continue into the future.

Vertical Merger

A vertical merger occurs between two companies that operate at different levels within an industry's supply chain, typically aimed at increasing efficiencies or reducing costs.