Which of the Following Statements Is Correct

Multiple Choice

Which of the following statements is correct?

A) In a partnership, liability for other partners' misdeeds includes but is limited to the amount a particular partner has invested in the business.
B) Partnerships must be formed according to specific rules which include the filing of a formal written agreement with state authorities where the partnership does business.
C) A fast growth company would be more likely to set up a partnership for its business organization than would a slow-growth company.
D) Partnerships have difficulty attracting capital in part because of the other disadvantages of the partnership form of business, including impermanence of the organization.
E) A major disadvantage of a partnership as a form of business organization is the high cost and practical difficulty of its formation.