drawback of switching from a partnership to the corporate form of organization is the following:
A) It subjects the firm to additional regulations.
B) It cannot affect the amount of the firm's operating income that goes to taxes.
C) It makes it more difficult for the firm to raise additional capital.
D) It makes the firm's investors subject to greater potential personal liabilities.
E) It makes it more difficult for the firm's investors to transfer their ownership interests.

Question

Quizplus · Accepted Answer

Switching from a partnership to a corporate form of organization subjects the firm to additional regulations such as requirements for reporting, shareholder meetings, and filings with regulatory agencies. This can increase the administrative burden and costs for the firm.

Drawback of Switching from a Partnership to the Corporate Form