Which of the Following Statements Is CORRECT

question 2

Multiple Choice

Which of the following statements is CORRECT?

• A)In a regular partnership, liability for other partners' misdeeds is limited to the amount of a particular partner's investment in the business.
• B)Partnerships have more difficulty attracting large amounts of capital than corporations because of such factors as unlimited liability, the need to reorganize when a partner dies, and the illiquidity (difficulty buying and selling) of partnership interests.
• C)A slow-growth company, with little need for new capital, would be more likely to organize as a corporation than would a faster growing company.
• D)In a limited partnership, the limited partners have voting control, while the general partner has operating control over the business.Also, the limited partners are individually responsible, on a pro rata basis, for the firm's debts in the event of bankruptcy.
• E)A major disadvantage of all partnerships relative to all corporations is the fact that federal income taxes must be paid by the partners rather than by the firm itself.

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Definitions:

F-ratio

A statistical measure used in analysis of variance (ANOVA) to determine the ratio of variance between groups to variance within groups.

P-value

A statistical measure that helps researchers determine the significance of their results, indicating the probability of observing the data or something more extreme if the null hypothesis is true.

SSE

Sum of Squares due to Error, a measure in statistics that quantifies the variance in an observed variable that is not explained by the predictive model.

Race Car Drivers

Individuals who operate cars specifically designed for competitive racing at high speeds.