Compared to Companies, What Is the Primary Disadvantage of Partnerships

Multiple Choice

Compared to companies, what is the primary disadvantage of partnerships as forms of business organisations?

A) The tax rates applied to partnership are higher than the tax rates applied to companies.
B) Any dividends paid to the owners of a partnership business are taxed twice-once at the partnership level and once at the personal, or individual level.
C) Partnerships generally are much easier to form (start up) than companies.
D) Partnerships have unlimited lives whereas companies do not.
E) The owners of a partnership-that is, the partners-have unlimited liability when it comes to business obligations whereas the owners of a company have limited liability.