Which of the following is a disadvantage of partnerships?
A) The cost of formation is high.
B) They are based on consensual contracts.
C) They are subject to more governmental supervision than corporations.
D) A partnership needs to obtain a license if it wishes to operate in more than one state.
E) A partnership will be dissolved any time a partner leaves the partnership.

Question

Quizplus · Accepted Answer

Disadvantages of partnerships include limitation of partners, dissolution at anytime with change in partners, unlimited liability of partners, and partners being required to pay income tax on money not received.

Which of the Following Is a Disadvantage of Partnerships