GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following is an advantage of general partnerships:
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Limited capital
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Unlimited liability
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Easy to end
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Combined capabilities
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Explanation:
Detailed explanation-1: -Correct Answer: Option C. Limited liability of business owners.
Detailed explanation-2: -One of the biggest differences between the two structures is the amount of legal protection that’s provided. A corporation would offer the highest level of protection, as all owners would have limited liability. In a partnership, at least one owner would typically have unlimited liability.
Detailed explanation-3: -The main benefit of a partnership is that it isn’t taxed separately. In other words, the IRS (Internal Revenue Service) doesn’t require partnerships to pay corporate taxes on profits. Instead, each partner receives their share of the profits as income and file and pay their own taxes.
There is 1 question to complete.