Which of the following is a disadvantage of general partnerships? ( a) The partners in a general partnership are exposed to double taxation. ( b) Compared to the other forms of ownership, the paperwork and costs involved in forming a general partnership are the most extensive. ( c) A partner who withdraws from a partnership cannot be held liable for any debts the furm had at the time of withdrawal. ( d) All general partners have unlimited liability for the debts and obligations of their business.
Which of the following is a disadvantage of general partnerships? ( a) The partners in a general partnership are exposed to double taxation. ( b) Compared to the other forms of ownership, the paperwork and costs involved in forming a general partnership are the most extensive. ( c) A partner who withdraws from a partnership cannot be held liable for any debts the furm had at the time of withdrawal. ( d) All general partners have unlimited liability for the debts and obligations of their business.
Chapter10: Partnership Taxation
Section: Chapter Questions
Problem 23MCQ
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Which of the following is a disadvantage of general partnerships?
( a) The partners in a general partnership are exposed to double taxation .
( b) Compared to the other forms of ownership, the paperwork and costs involved in forming a general
partnership are the most extensive.
( c) A partner who withdraws from a partnership cannot be held liable for any debts the furm had at the time of
withdrawal.
( d) All general partners have unlimited liability for the debts and obligations of their business.
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