It Is Easier to Raise Funds in Partnerships Than in Sole

question 49

Multiple Choice

It is easier to raise funds in partnerships than in sole proprietorships because:

• A)several partners mean greater earning power and credit.
• B)some of the partners will have unlimited liability.
• C)partnerships have less regulatory controls than sole proprietorship.
• D)all partners will have limited liability.
• E)partnerships can issue public stock with much less difficulty than sole proprietorships.

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Definitions:

Company's Earnings

The profit a company generates over a specific period, reflecting its financial performance and profitability.

Floating Rate

An interest rate that fluctuates over time with the market or an underlying benchmark.

Exotic

Often refers to a type of financial instrument or investment that is complex and not traditional, involving unique characteristics or structures.

Fisher Effect

The relationship between nominal returns, real returns, and inflation.