Compared to a Proprietorship, a Disadvantage of a Partnership Is

question 82

Multiple Choice

Compared to a proprietorship, a disadvantage of a partnership is

• A) that profits are taxed twice.
• B) that it is harder to keep the firm going after the death of an owner.
• C) unlimited liability.
• D) that potential liability to each partner is greater.

Recognize the implications of oral modifications on written contracts.

Analyze the relationship between written contracts and dispute resolution.

Understand the key concepts and requirements of the statute of frauds.

Recognize types of contracts and agreements that fall within the scope of the statute of frauds.

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Definitions:

Support Departments

Units within an organization that provide essential services or support to the production or primary departments but do not directly engage in the main activity of the business.

Proportional Usage

The allocation of resources, costs, or efforts in relation to the direct usage or benefit obtained from those resources.

Direct Method

A means of reporting cash flows from operating activities that presents specific cash inflows and outflows directly rather than using the indirect method adjustments.

Reciprocal Services Method

An accounting method used to allocate costs between departments of an organization that provide services to each other.