A disadvantage of general partnerships is:
A)double taxation of distributed profits.
B)the partnership's assets are commingled with each partner's personal assets.
C)only individuals can be partners.
D)each partner may conduct business in the name of the entity and make agreements that legally bind all partners.

Question

Quizplus · Accepted Answer

General partnerships do not face double taxation like corporations, and the partnership's assets are kept separate from each partner's personal assets. Partnerships can include entities other than individuals. A key disadvantage is that each partner can make legally binding agreements on behalf of the partnership, potentially creating liabilities for all partners.

A Disadvantage of General Partnerships Is