Which of the Following Is a Significant Disadvantage of a General

question 67

Multiple Choice

Which of the following is a significant disadvantage of a general partnership?

• A) The cost of forming it is high.
• B) Each partner is fully responsible for the liabilities incurred by the partnership.
• C) There is a risk associated with the industry in which it operates.
• D) Forming the business is very complex.

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Definitions:

Term Deposits

A type of bank deposit that is held at a financial institution for a fixed term or period, where the money can be withdrawn only after the term ends or by giving a predetermined notice.

Purchase Date

The date on which a buyer acquires possession or ownership of an item or investment.

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan amount.

Full Amount

The total quantity or extent of something, typically referring to the complete sum of money owed or due.