Asked by stacie Johnson on May 11, 2024
Verified
When compared to a corporation, one of the major disadvantages of the partnership is its limited life.
Limited Life
The concept that an asset or an entity has a finite existence or operational period before it ceases to be useful or exist.
Corporation
A legal entity that is separate and distinct from its owners, providing them with limited liability, and is permitted to own assets, incur liabilities, and sell securities, among other rights.
Partnership
A legitimate business model involving collaboration between two or more people in managing and dividing earnings.
- Understand the advantages and disadvantages of partnerships compared to corporations.
Verified Answer
MA
Mario AymanMay 13, 2024
Final Answer :
True
Explanation :
Unlike a corporation which can exist forever, a partnership has a limited life and is dissolved when one of the partners decides to leave, dies, or retires.
Learning Objectives
- Understand the advantages and disadvantages of partnerships compared to corporations.