Question

partnerships have several limitations including:

c.
the high taxes that partnerships have to pay.

d.
the potential for disagreements among partners.

a.
partnership incentives for employees.

b.
the ability to pool resources to secure capital.

Explanation:

Identify the question objective

The question asks for a limitation of business partnerships.

Analyze option c

Partnerships benefit from pass-through taxation, avoiding double corporate taxes.

Analyze option d

Sharing control introduces Entrepreneurship Risks like interpersonal conflicts.

Analyze option a

Employee incentives are generally an organizational tool, not a limitation.

Analyze option b

Pooling resources to secure capital is a key advantage, not a limitation.

Answer:

• c. the high taxes that partnerships have to pay.
• d. the potential for disagreements among partners. (Correct answer)
• a. partnership incentives for employees.
• b. the ability to pool resources to secure capital.