John, an accounting student, was trying to identify the advantages of establishi
ID: 2598126 • Letter: J
Question
John, an accounting student, was trying to identify the advantages of establishing a partnership compared to a corporation. Which statement is deemed a disadvantage?
the requirement for the partnership to pay income taxes.
the complexity of operations.
the extent of governmental regulation.
the legal requirements for formation.
unlimited liability for the partners.
the requirement for the partnership to pay income taxes.
the complexity of operations.
the extent of governmental regulation.
the legal requirements for formation.
unlimited liability for the partners.
Explanation / Answer
Unlimited liability for the partners
since there is no separation between the partners and business , the partners have unlimited liability.
Unlimited liability for the partners
since there is no separation between the partners and business , the partners have unlimited liability.