Question
Which of the following statements is CORRECT? a) A fast-growth company would be more likely to set up as a partnership for its business organization
Which of the following statements is CORRECT?
a) A fast-growth company would be more likely to set up as a partnership for its business organization than would a slow-growth company. | ||
b) In a regular partnership, liability for the firm's debts is limited to the amount a particular partner has invested in the business. | ||
c) Corporations are at a disadvantage relative to partnerships because they have to file more reports to state and federal agencies, including the Securities and Exchange Administration, even if they are not publicly owned. | ||
d) Partnerships have difficulty attracting capital in part because of their unlimited liability, the lack of impermanence of the organization, and difficulty in transferring ownership. |
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