Drawback of Switching from a Partnership to the Corporate Form

question 13

Multiple Choice

drawback of switching from a partnership to the corporate form of organization is the following:

• A) It subjects the firm to additional regulations.
• B) It cannot affect the amount of the firm's operating income that goes to taxes.
• C) It makes it more difficult for the firm to raise additional capital.
• D) It makes the firm's investors subject to greater potential personal liabilities.
• E) It makes it more difficult for the firm's investors to transfer their ownership interests.

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Definitions:

HPV

Human Papillomavirus, a common viral infection that can lead to various health problems, including genital warts and certain cancers.

Microbes

Microscopic organisms, including bacteria, viruses, fungi, and algae, that live all around us and can have both beneficial and harmful effects on human health.

Genital Warts

A sexually transmitted infection caused by certain strains of human papillomavirus (HPV), characterized by the appearance of warts on the genital area.

HPV

Human papillomavirus, a virus from the papillomavirus family that can lead to genital warts and is associated with many types of cancers.