One advantage of a partnership is

Question

Quizplus · Accepted Answer

Partnerships are relatively easy to form as they require less formalities and paperwork compared to other business entities. However, A is incorrect as costs may not necessarily be lower in a partnership as it depends on the type of business and the particular arrangement between the partners. C is also incorrect as profits are typically divided according to the partners' agreed-upon terms. D is incorrect as partnerships are not double taxed like corporations, which pay taxes on their profits and then shareholders pay taxes on their dividends.

One Advantage of a Partnership Is