Asked by Sewisha Thabo Lehong on Jul 04, 2024
Verified
Which of the following is not a principal characteristic of the partnership form of business organization?
A) Mutual agency
B) Association of individuals
C) Limited liability
D) Limited life
Principal Characteristic
The most significant or defining feature of an object, concept, or entity.
Limited Liability
A legal structure that protects a company's owners or shareholders from being personally liable for the company’s debts or liabilities.
Limited Life
A term indicating that an entity or asset has a finite period of usefulness or existence.
- Become familiar with the configuration aspects and legal particulars of partnerships.
Verified Answer
AC
Argenis ColonJul 08, 2024
Final Answer :
C
Explanation :
Limited liability is not a principal characteristic of the partnership form of business organization. In a partnership, each partner is personally liable for the debts and obligations of the partnership, therefore, there is no limited liability protection. Mutual agency, association of individuals, and limited life are all principal characteristics of a partnership.
Learning Objectives
- Become familiar with the configuration aspects and legal particulars of partnerships.
Related questions
Which of the Following Statements About Partnerships Is Incorrect ...
The Accounting Procedures Are the Same for Sole Proprietorships as ...
A Partnership Can Be Formed with an Oral Agreement
The Essential Elements of a Partnership Do Not Include ...
Andy Invests $5,000 as a Limited Partner in FastHorses, LP ...