A Disadvantage of General Partnerships Is

question 102

Multiple Choice

A disadvantage of general partnerships is:

• A)double taxation of distributed profits.
• B)the partnership's assets are commingled with each partner's personal assets.
• C)only individuals can be partners.
• D)each partner may conduct business in the name of the entity and make agreements that legally bind all partners.

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Definitions:

Patented

A legal status provided to an inventor or assignee granting exclusive rights to use, make, and sell an invention for a certain period of time.

Marginal Benefit

The increase in satisfaction or utility one gets from the consumption of an additional unit of any good or service.

Marginal Cost

The raised expense resulting from the production of one additional product or service unit.

Optimal Amount

The most efficient level or quantity of a good or service to achieve a specific goal or maximize utility.