One of the differences between a corporate form of organization and partnership form is:
A)Someone in the corporate form has personal liability.
B)Corporations can have offices in only one state.
C)Someone in the partnership form has personal liability.
D)Partnerships can have offices in only one state.

Question

Quizplus · Accepted Answer

In a partnership form of organization, the partners have personal liability for the debts and obligations of the partnership. In a corporate form of organization, the owners (shareholders) have limited liability and are not personally responsible for the debts and obligations of the corporation. Therefore, choice C is the correct answer. Choices A, B, and D are incorrect because they are either partially true or completely false statements.

One of the Differences Between a Corporate Form of Organization