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Which of the Following Is a Disadvantage of Partnerships Over

Question 54

Multiple Choice

Which of the following is a disadvantage of partnerships over sole proprietorships?


A) Unlike sole proprietorships,partnerships do not face any regulatory controls that affect their activities.
B) In partnerships,all owners have unlimited liability,whereas in sole proprietorships they have limited liability.
C) In partnerships,profits have to be shared,whereas in sole proprietorships all profits belong exclusively to the owner.
D) In sole proprietorships,the owners have access to more funds than in partnerships.
E) Unlike a sole proprietorship,a partnership is terminated when a partner dies or withdraws.

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