One important disadvantage of partnerships is the
A)double taxation of their income.
B)liabilities the partners face.
C)limit to the number of possible partners.
D)vulnerability to takeovers which they face.
E)higher tax rates for higher than normal profits that are distributed as capital gains.

Question

Quizplus · Accepted Answer

Partnerships expose the partners to unlimited liability, meaning that each partner is personally responsible for the debts and obligations of the partnership. This can lead to financial ruin if the partnership is sued or incurs significant debts.

One Important Disadvantage of Partnerships Is the