One Drawback of Switching from a Partnership to the Corporate

question 5

Multiple Choice

One 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:

Green Plants

Photosynthetic, plant organisms that contain chlorophyll and produce oxygen as a byproduct of photosynthesis.

Herbivores

Animals that primarily eat plants or plant-based materials.

Cultural Eutrophication

Over-enrichment caused by human activities, leading to excessive bacterial growth and oxygen depletion of a body of water.

Biogeochemical Cycle

The circulation of elements and substances through living organisms, the Earth, its atmosphere, and the oceans, contributing to ecosystem functioning and sustainability.