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DIA [1.3K]
3 years ago
14

Limited liability is a major advantage of a partnership as compared to a corporation. True or False

Business
1 answer:
Sergeeva-Olga [200]3 years ago
7 0

Answer:

False

Explanation:

Limited liability is a feature mostly enjoyed by shareholders of a corporation. Limited liability protects the personal properties of shareholders from interference should the corporation fail to meet its obligations.

Partners in a partnership do not enjoy limited liability.  It means that if the business is unable to meet its obligation, its partners' properties can be used to sold to settle the debts.  A partnership business and its owner are treated as one entity. The assets and liabilities of the business are not distinct from the owners.  

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