49.2k views
3 votes
A disadvantage of a partnership where remaining partners are unwilling to buy the share of a partner who retires can be referred to as _______________.

a) Limited liability
b) Partnership dissolution
c) Partnership continuation
d) Buy-sell agreement failure

User Sebdelsol
by
7.9k points

1 Answer

5 votes

Final answer:

The term for a disadvantage of a partnership when remaining partners are unwilling to buy out a retiring partner is referred to as partnership dissolution.

Step-by-step explanation:

A disadvantage of a partnership where remaining partners are unwilling to buy the share of a partner who retires can be referred to as partnership dissolution. This occurs when the structure of the partnership changes due to the departure of a member, which may necessitate the reformation or termination of the original partnership agreement. Unlike a limited liability partnership, a general partnership does not limit personal liability, and the partners are responsible for each other's actions and the business's debts, which can extend to personal assets.

User Themerlinproject
by
8.4k points