Which of the following statements is correct?
A) An S corporation has a greater opportunity to raise capital than does an C corporation.
B) A general partnership has a greater opportunity to raise capital than does a limited partnership.
C) A partnership has a greater opportunity to raise capital than does a sole proprietorship.
D) Only a. and b. are correct.
E) a., b., and c. are correct.

Question

Quizplus · Accepted Answer

A partnership can have multiple partners, which can increase the likelihood of raising capital compared to a sole proprietorship. Additionally, some partners in a partnership may also have the ability to bring in additional capital through their own networks or resources. S corporations and C corporations both have similar opportunities to raise capital through issuing stocks or seeking investors. Limited partnerships may have more restrictions on raising capital compared to general partnerships, as limited partners typically do not have as much control over the company's operations and may have limited liability.

Which of the Following Statements Is Correct