One 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 makes it more difficult for the firm to raise additional capital.
C) It makes the firm's investors subject to greater potential personal liabilities.
D) 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 corporation means that the corporation is now subject to additional regulations, such as corporate tax laws and filing requirements. Partnerships have fewer formalities and regulations to follow than corporations.

One Drawback of Switching from a Partnership to the Corporate