Which of the following best lists the disadvantages of a partnership:
A)Unlimited life and mutual agency.
B)Mutual agency and limited liability.
C)Unlimited liability and unlimited life.
D)Limited Life and limited liability.
E)Limited life,mutual agency,and unlimited liability are all disadvantages of a partnership

Question

Quizplus · Accepted Answer

Limited life means that if one partner dies or leaves the partnership, the partnership is dissolved. Mutual agency means that each partner can legally bind the partnership and all partners are responsible for the actions of the others. Unlimited liability means that each partner is personally responsible for all the debts and obligations of the partnership. These aspects make it difficult to attract investors and obtain financing for the business.

Which of the Following Best Lists the Disadvantages of a Partnership