The disadvantages of the partnership form of business organization, compared to corporations, include
A) the legal requirements for formation.
B) unlimited liability for the partners.
C) the requirement for the partnership to pay income taxes.
D) the extent of governmental regulation.
E) the complexity of operations.

Question

Quizplus · Accepted Answer

In a partnership, partners have unlimited liability, meaning they are personally responsible for the debts and obligations of the business, unlike in a corporation where shareholders have limited liability.

The Disadvantages of the Partnership Form of Business Organization, Compared