One of the disadvantages of a corporation when compared to a partnership is the limited liability of the owners.

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Quizplus · Accepted Answer

The statement is actually the other way around. A corporation offers limited liability to its owners, which means that they are not personally responsible for the company's debts and obligations. In a partnership, on the other hand, the partners share the profits and losses equally, and are individually liable for the partnership's debts and obligations.

One of the Disadvantages of a Corporation When Compared to a Partnership