Which of the Following Is a Disadvantage of Partnership Firms

question 167

Multiple Choice

Which of the following is a disadvantage of partnership firms?

• A) They cannot be dissolved without the permission of the SEC.
• B) They are taxed at multiple levels: corporate level and individual level.
• C) They have more difficulty in raising capital as compared to a sole proprietorship.
• D) They have mutual agency which creates personal obligations for each partner.

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