Which of the following is a characteristic of partnerships?
A) They cannot operate in more than one state without obtaining a license to do so.
B) They are generally subject to more regulation and governmental supervision than a corporation.
C) They may not use any word in the name that would imply the existence of a corporation.
D) They are the least expensive form of business organization.
E) They allow unlimited number of people to become partners.

Question

Quizplus · Accepted Answer

A partnership may not use any word in the name, such as company, that would imply the existence of a corporation. Since a partnership is created by agreement, the partners select the name of the partnership. This right of selection is subject to two limitations in many states.

Which of the Following Is a Characteristic of Partnerships