In comparison with a company, a disadvantage of operating as a partnership is:
A) limited life.
B) unlimited liability.
C) mutual agency.
D) all of the above.

Question

Quizplus · Accepted Answer

All of the options listed are disadvantages of operating as a partnership compared to a company. Partnerships often have a limited life, meaning they may dissolve upon the death or withdrawal of a partner unless there are provisions in place for continuation. Partners in a general partnership face unlimited liability, meaning they are personally responsible for the debts of the business. Mutual agency is another characteristic of partnerships where each partner can make decisions and enter into contracts on behalf of the partnership, potentially creating liabilities for all partners.

In Comparison with a Company, a Disadvantage of Operating as a Partnership