Which of the following is not a correct statement regarding the advantage of the partnership entity form over the C corporation form?
A) A partnership typically has easier administrative and filing requirements than does a C corporation.
B) Partnership income is subject to a single level of taxation; corporate income is double taxed.
C) Partnerships may specially allocate income and expenses among the partners provided the substantial economic effect requirements are met; corporate dividends must be proportionate to shareholdings.
D) Partners in a general partnership have less personal liability for entity claims than shareholders of a C corporation.

Question

Quizplus · Accepted Answer

Partners in a general partnership have unlimited personal liability for the debts and obligations of the partnership, unlike shareholders of a C corporation who typically have limited liability, meaning they are only liable up to the amount of their investment in the corporation.

Which of the Following Is Not a Correct Statement Regarding