Which of these is an advantage of a private company compared to a partnership?
i.Perpetual life.
ii.Easier transfer of ownership.
iii.Mutual agency.
iv.Limited liability.

Question

Quizplus · Accepted Answer

The advantage of perpetual life means that the private company can exist indefinitely and is not dependent on the lives of its owners, unlike a partnership. The easier transfer of ownership allows for easier entry and exit of shareholders. The limited liability protects the personal assets of shareholders from the company's debts and liabilities. Mutual agency, which is a characteristic of a partnership, refers to the authority of each partner to act on behalf of the partnership, which is not necessarily an advantage compared to a private company.

Which of These Is an Advantage of a Private Company