Which one of the following is a disadvantage of a partnership?
A) Double taxation.
B) Ability to raise capital as compared to a sole proprietorship.
C) Growth limitations due to the inability to raise investment capital.
D) The debt obligations of a limited partner.
E) Complexity and cost of partnership formation.

Question

Quizplus · Accepted Answer

Partnerships often face growth limitations due to their inability to raise investment capital as easily as larger corporations can. This is because they may not have access to public markets to sell equity or debt as corporations do.

Which One of the Following Is a Disadvantage of a Partnership