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Cheers Canada Inc

Question 3

Multiple Choice

Cheers Canada Inc.operates as a partnership.Now the partners have decided to convert the business into a regular corporation.What will be the effect?


A) Assuming Cheers Canada Inc. is profitable, less of its income will be subject to taxes.
B) Cheers Canada Inc. will now be subject to fewer regulations.
C) Cheers' Canada Inc. shareholders (the ex-partners) will now be exposed to less liability.
D) Cheers Canada Inc. will find it more difficult to raise additional capital.

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