The advantages of the partnership form of business organization, compared to corporations, include
A) single taxation.
B) ease of raising capital.
C) mutual agency.
D) limited liability.
E) difficulty of formation.

Question

Quizplus · Accepted Answer

Partnerships are subject to single taxation, meaning profits are taxed only once as personal income to the partners, unlike corporations which face double taxation (corporate tax and personal income tax on dividends).

The Advantages of the Partnership Form of Business Organization, Compared