A partnership:
A)is taxed the same as a corporation.
B)terminates at the death of any limited partner.
C)creates an unlimited liability for all general partners for the partnership's debts.
D)has the same ability as a corporation to raise capital.
E)allows for easy transfer of interest from one general partner to another.

Question

Quizplus · Accepted Answer

A partnership creates unlimited liability for all general partners for the partnership's debts, meaning that their personal assets may be used to pay off any debts owed by the partnership. This distinguishes it from a corporation, which has limited liability protection for shareholders. Additionally, while partnerships can raise capital, they may face more difficulty in doing so compared to corporations. Partnerships can also have restrictions on transferring interests from one partner to another.

A Partnership