Which of the following statements is correct?

Question

Quizplus · Accepted Answer

The partnership structure ensures that business risks are shared between the partners. This is one of the advantages of a partnership, as it spreads the risk and responsibility among the partners. A is incorrect because partnerships typically do not have limited liability, and partners are personally liable for the debts and obligations of the partnership. B is incorrect because partnerships do not pay corporation tax; instead, the partners pay personal income tax on their share of profits. D is incorrect because partnerships can be suitable for many sectors of business activity.

Which of the Following Statements Is Correct