Which of the following are disadvantages of the partnership form of ownership?
A) Personal liability and double taxation.
B) Personal liability and limited ﬁrm life.
C) Double taxation and limited ﬁrm life.
D) Ease of formation and unlimited ﬁrm life.
E) Ease of formation and ease of ownership transfer.

Question

Quizplus · Accepted Answer

The partnership form of ownership has the disadvantage of personal liability for the partners, meaning that each partner is personally responsible for the debts and obligations of the partnership. Additionally, the firm's life is limited as the partnership dissolves upon the death or withdrawal of a partner unless a partnership agreement specifies otherwise. Option A and C refer to disadvantages of other forms of ownership, while options D and E list advantages of the partnership form.

Which of the Following Are Disadvantages of the Partnership Form