Which of these is an advantage of a private company compared with a partnership?
i) perpetual life
Ii) easier transfer of ownership
Iii) mutual agency
Iv) limited liability
A) i, ii, iii
B) i, ii, iv
C) ii, iii, iv
D) i, ii

Question

Which of these is an advantage of a private company compared with a partnership? 
i) perpetual life
Ii) easier transfer of ownership
Iii) mutual agency
Iv) limited liability
A) i, ii, iii
B) i, ii, iv
C) ii, iii, iv
D) i, ii

Quizplus · Accepted Answer

A private company has perpetual life and limited liability, similar to a partnership. However, the advantage of a private company over a partnership is that it allows for easier transfer of ownership, which is reflected in option (ii). Mutual agency is a characteristic of a partnership and not relevant to this comparison.

Which of These Is an Advantage of a Private Company