A Major Disadvantage of the Partnership Form of Ownership and Management

question 78

Multiple Choice

A major disadvantage of the partnership form of ownership and management is that it _____.

• A)is subject to double taxation
• B)faces more government rules than other ownership forms
• C)binds all partners to actions made by any individual partner acting on behalf of the firm
• D)may separate ownership from management

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Definitions:

Check Kiting

A fraudulent banking practice involving the use of non-existent funds or delays in the banking system to artificially inflate the balance of a bank account.

Check Defalcation

The misappropriation or embezzlement of funds involving a check, either by altering the check or by unauthorized issuance.

Insider-Trading Scheming

Insider-trading scheming involves the illegal practice of trading a public company's stock or other securities based on material, non-public information about the company.

Computer Program

A set of instructions written in a programming language that is executed by a computer to perform a specific task.