Jim is one of several general partners who own Beef 'N Beer,a small chain of restaurants located in Missouri and Illinois.Jim is interested in converting the partnership into a master limited partnership.If he convinces other partners to go along with his idea,Beef 'N Beer will:
A)Offer shares of ownership that are traded on a stock exchange much like a corporation.
B)Pay its taxes like a corporation.
C)Begin to operate much like a sole proprietorship.
D)Have to change its name to include the term Ltd.in its title to indicate its owners have limited liability.

Question

Quizplus · Accepted Answer

Converting into a master limited partnership would allow Beef 'N Beer to offer shares of ownership that are traded on a stock exchange, similar to a corporation. This would provide an opportunity to raise capital and expand the business, while also maintaining the tax benefits of a partnership.

Jim Is One of Several General Partners Who Own Beef