Which of the following statements is correct?
A) In a partnership,liability for other partners' misdeeds includes but is limited to the amount a particular partner has invested in the business.
B) Partnerships must be formed according to specific rules which include the filing of a formal written agreement with state authorities where the partnership does business.
C) A fast growth company would be more likely to set up a partnership for its business organization than would a slow-growth company.
D) Partnerships have difficulties attracting capital in part because of the other disadvantages of the partnership form of business,including impermanence of the organization.
E) A major disadvantage of a partnership as a form of business organization is the high cost and practical difficulties of its formation.

Question

Quizplus · Accepted Answer

Partnerships often face challenges in attracting capital due to their inherent disadvantages, such as the impermanence of the organization and unlimited liability of the partners. These factors can make investors wary, as the partnership structure does not offer the same level of protection or stability as other forms of business organization, like corporations.

Which of the Following Statements Is Correct