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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

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.

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User Themerlinproject
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