Which of the following are disadvantages of a partnership?
I.limited life of the ﬁrm
II.personal liability for ﬁrm debt
III.greater ability to raise capital than a sole proprietorship
IV.lack of ability to transfer partnership interest

Question

Which of the following are disadvantages of a partnership? 
I.limited life of the ﬁrm
II.personal liability for ﬁrm debt
III.greater ability to raise capital than a sole proprietorship
IV.lack of ability to transfer partnership interest

Quizplus · Accepted Answer

Partnerships often have a limited life, as they may dissolve when a partner decides to leave. Partners also face personal liability for the firm's debts, which can be a significant disadvantage. Additionally, transferring partnership interest can be difficult without the consent of all partners, making this another drawback. The ability to raise capital, although potentially greater than a sole proprietorship due to more owners, is not considered a disadvantage, thus not included in the correct answer.

Which of the Following Are Disadvantages of a Partnership