All of the following are advantages of a partnership EXCEPT:
A)partnerships are relatively easy and inexpensive to establish.
B)partnerships avoid double taxation since the partnership itself is not subject to federal taxation.
C)partnerships have the greatest ability to accumulate capital of all of the forms of ownership.
D)partnerships offer the ability to combine the management and business skills of two or more people in a complementary and powerful fashion.

Question

Quizplus · Accepted Answer

This statement is not true. Partnerships do not have the greatest ability to accumulate capital of all forms of ownership. This may actually be a disadvantage of partnerships since they may have limited access to funds compared to corporations or other types of businesses.

All of the Following Are Advantages of a Partnership EXCEPT