All of the Following Are Advantages of Partnerships Except One

question 184

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)a greater opportunity for specialization by the owners
• E)a continuation of the firm if one partner dies

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Definitions:

Debt

Money owed by one party to another under the agreement that it will be repaid.

Lien

A legal right or claim against a property, typically used as security for a debt or loan, ensuring payment.

Satisfy Debt

To fully pay off or settle a debt, meeting the terms agreed upon by the debtor and creditor.

Equipment

Equipment consists of the necessary tools, machinery, devices, or any tangible items required for the specific purpose of executing a task or activity.