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16 October, 04:29

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

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  1. 16 October, 04:40
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    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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