15. Which is not a correct statement about limited partnership and LLP? A limited partnership includes at least one general partner and at least one limited partner LLP allows all partners to take an active role in management, while also offering all partners limited liability Full-shield protection means that partners have limited liability except those resulting from their own negligence or malpractice Partial-shield protection means that each partner has limited liability for the negligence or malpractice of other owners, but still has unlimited liability for any other debts. Partial-shield protection means that each partner has limited liability for the negligence or malpractice of other owners as well as for any other debts a. b. c. d. e. 16. Which of the following is not a correct statement? Formation of a corporation requires filing articles of incorporation and filing fees, but not adoption of corporate bylaws. a. b. Management and ownership are not always, but basically separate c. Ownership is represented by common stock and preferred stocks. d. Common stocks carry voting rights, while preferred stocks don't. e. Stocks of large corporations are usually publicly traded 17. Which of the following is a correct statement? a. b. c. d. Many smaller corporations are not always, but mostly privately owned Only individuals can be stockholders. Mutual funds, insurance companies, pension funds cannot hold stocks. Institutional investors can own only the minority of stock to protect individual nvestors. Individuals cannot incorporate their business and be the sole shareholder e. 18. Which of the following correctly describes the advantages of C corporations? a. b. c. d. e. Unlimited liability Limited permanence Ease of transfer of ownership Limited access to large amounts of financial capital Limited access to specialized management