Disadvantages of a partnership include:
A) Limited life.
B) Mutual agency.
C) Unlimited liability.
D) Co-ownership of property.
E) All of these.

Question

Quizplus · Accepted Answer

All of these options are disadvantages of a partnership.

A) Limited life: Partnerships can dissolve when one partner leaves or passes away, limiting the lifespan of the business. 
B) Mutual agency: Each partner has the power to bind the others to contracts and decisions, making it difficult to make unilateral decisions. 
C) Unlimited liability: Partners are personally liable for the debts and obligations of the partnership, putting their personal assets at risk. 
D) Co-ownership of property: Partners share ownership of the business and its assets, which can lead to conflict and disagreements.

Disadvantages of a Partnership Include