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FIN2601 ASSIGNMENT 1 SEMESTER 1 – 2023 (830786)
R60.00
5 Downloads
FIN2601 ASSIGNMENT 1 SEMESTER 1 – 2023 (830786)
QUESTION 1
What is a partnership’s primary flaw, as a legal structure for conducting business?
1. The owners have unlimited liability, in that personal wealth can be taken to satisfy debts.
2. The owners lack secrecy, because regulations require firms to disclose financial results.
3. The owners, who are limited partners, have limited liability and cannot lose more than they invested.
4. The owners, who are general partners, have unlimited liability and may have to cover the debts of other partners.
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