Which of the Following Statements Best Describes Partnerships

question 50

Multiple Choice

Which of the following statements best describes partnerships?

• 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 trouble attracting large capital due to such facts as unlimited liability, and the illiquidity 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) A major disadvantage of all partnerships relative to all corporations is the fact that taxes must be paid by the partners rather than by the firm itself.