A partnership:
A) cannot operate in more than one state without obtaining a license to do so.
B) is generally subject to more regulation and governmental supervision than a corporation.
C) provides general partners with unlimited liability.
D) involves significant formation costs.
E) allows unlimited number of people to become partners.

Question

Quizplus · Accepted Answer

Disadvantages of partnerships include limited number of partners; can be dissolved any time a partner leaves the partnership; unlimited liability; and, partners are taxed on their share of the profits even if they did not receive them.

A Partnership