Which of the following is a disadvantage of partnership firms?
A)These cannot be dissolved without the permission of SEC.
B)These are taxed at multiple levels: corporate level and individual level.
C)These have more difficulty in raising capital as compared to a sole proprietorship.
D)These have a mutual agency which creates personal obligations for each partner.

Question

Quizplus · Accepted Answer

In a partnership, each partner acts as an agent for the business, which means that the actions of one partner can create personal obligations for all partners, potentially leading to conflicts and liabilities.

Which of the Following Is a Disadvantage of Partnership Firms