Multiple Choice QuestionA key disadvantage of a general partnership is ______.Multiple choice question.extensive paperworkfriction between partnersadditional regulationsadditional tax liability
Question
Multiple Choice QuestionA key disadvantage of a general partnership is ______.Multiple choice question.extensive paperworkfriction between partnersadditional regulationsadditional tax liability
Solution
The correct answer is "additional tax liability". In a general partnership, partners are personally liable for the business's debts and obligations. This includes taxes. Therefore, partners may face additional tax liability, which is a key disadvantage of a general partnership.
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