Which of the following are disadvantages of the partnership form of ownership?
A) Personal liability and double taxation.
B) Personal liability and limited firm life.
C) Double taxation and limited firm life.
D) Ease of formation and unlimited firm life.
E) Ease of formation and ease of ownership transfer.

Question

Quizplus · Accepted Answer

Partnerships face personal liability, where partners are personally responsible for the debts of the business, and limited firm life, meaning the partnership may dissolve upon the death or withdrawal of a partner. Double taxation is a disadvantage of corporations, not partnerships. Ease of formation is actually an advantage of partnerships.

Which of the Following Are Disadvantages of the Partnership Form