Which of the following statements about partnerships is most accurate?
A) A partnership is a corporation with fewer than 100 owners.
B) A major advantage of a partnership is that it offers all owners limited liability.
C) A major drawback of a partnership is that it is difficult to terminate.
D) Partnerships are taxed at the lowest corporate tax rate.

Question

Quizplus · Accepted Answer

Once partners commit to a partnership, the arrangement is often difficult to terminate. Questions of who gets what and what happens next are usually hard to resolve when the business is closed.

Which of the Following Statements About Partnerships Is Most Accurate