A primary advantage of a general partnership, compared with a corporation, does not include which of the following?
A) Ease of formation.
B) No income tax on the business itself.
C) Complete control by the partners.
D) Limited liability for the owners.

Question

Quizplus · Accepted Answer

The primary advantage of a general partnership is ease of formation, as well as complete control by the partners. Another advantage is that there is no income tax on the business itself, as profits and losses are passed through to the partners and reported on their individual tax returns. However, the partners in a general partnership do not have limited liability, meaning they are personally responsible for the business's debts and obligations. Therefore, option D is incorrect.

A Primary Advantage of a General Partnership, Compared with a Corporation