All of the following are advantages of a partnership except ________.
A)partnerships are relatively easy and inexpensive to establish
B)partnerships avoid double taxation since the partnership itself is not subject to federal taxation
C)partnerships have the greatest ability to accumulate capital of all of the forms of ownership
D)partnerships offer the ability to combine the management and business skills of two or more people in a complementary and powerful fashion

Question

Quizplus · Accepted Answer

This statement is false. Partnerships do not have the greatest ability to accumulate capital of all forms of ownership. This is because partnerships have limited ability to raise capital through the sale of ownership shares compared to corporations.

All of the Following Are Advantages of a Partnership Except