Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Sport Funding And Finance

Authors: Bob Stewart

2nd Edition

041583984X, 978-0415839846

More Books

Students also viewed these Finance questions

Question

What is Working Capital ? Explain its types.

Answered: 1 week ago