Which of the following statements is CORRECT?
A) In a regular partnership, liability for other partners' misdeeds is limited to the amount of a particular partner's investment in the business.
B) Attracting large amounts of capital is more difficult for partnerships than for corporations because of such factors as unlimited liability, the need to reorganize when a partner dies, and the illiquidity (difficulty buying and selling) of partnership interests.
C) A slow-growth company, with little need for new capital, would be more likely to organize as a corporation than would a faster growing company.
D) The limited partners in a limited partnership have voting control, while the general partner has operating control over the business.Also, the limited partners are individually responsible, on a pro rata basis, for the firm's debts in the event of bankruptcy.
E) A major disadvantage of all partnerships compared to all corporations is the fact that federal income taxes must be paid by the partners rather than by the firm itself.
Correct Answer:
Verified
Q27: Which of the following statements is CORRECT?
A)
Q28: With which of the following statements would
Q29: Which of the following statements is CORRECT?
A)
Q30: Which of the following statements is CORRECT?
A)
Q31: Which of the following statements is CORRECT?
A)
Q33: Money markets are markets for
A) Foreign stocks.
B)
Q34: Which of the following is a primary
Q35: Suppose the U.S.Treasury announces plans to issue
Q36: Which of the following statements is CORRECT?
A)
Q37: Which of the following statements is CORRECT?
A)
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents