Compared to corporations, what is the primary disadvantage of partnerships as a form of business organization?
A. The tax rates applied to partnerships are higher than the tax rates applied to corporations.
B. Any dividends paid to the owners of a partnership business are taxed twice, once at the partnership level and once at the personal, or individual level.
C. Partnerships generally are more complex to form (start up) than corporations.
D. Partnerships have unlimited lives whereas corporations do not.
E. The owners of a partnership, that is, the partners, have unlimited liability when it comes to business obligations whereas the owners of a corporation have limited liability.
Answer: E
You might also like to view...
Business takes resources, makes products out of them, and discards whatever is left over. This approach is known as:
A. cradle-to-grave approach. B. open-loop production. C. closed-loop production. D. take-make-waste.
________ is best described as a set of goal-directed actions a firm takes to gain and sustain superior performance relative to competitors.
A. Behavior modification B. Strategy C. Competency management D. Credo
Jim's Jewelry Store orders Sho-Off-brand display racks from Kino's Merchandise Presentation, Inc. Kino's mistakenly ships racks of the wrong size and color, which Jim's rejects and returns via Longroad Shipping Company. During the return, the racks are lost. The loss is suffered by
A. Jim's. B. Longroad. C. Sho-Off. D. Kino's.
Drawers are secondary parties on a note
Indicate whether the statement is true or false