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
A) I and II only
B) III and IV only
C) II and III only
D) I, II, and IV only
E) I, III, and IV only

Question

Quizplus · Accepted Answer

A partnership has a limited life, as it may dissolve upon a partner's departure or death. Partners have personal liability for the firm's debts, and transferring partnership interest is often restricted, making these disadvantages.

Which of the Following Are Disadvantages of a Partnership