One Drawback of Switching from a Partnership to the Corporate

question 14

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 makes it more difficult for the firm to raise additional capital.
• C) It makes the firm's investors subject to greater potential personal liabilities.
• D) It makes it more difficult for the firm's investors to transfer their ownership interests.

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Definitions:

Web-Enabled

Refers to applications or services that are accessible or functional through the internet using web browsers.

Data Entry

The process of inputting information into electronic formats by typing or scanning, typically used in databases and computer systems.

FAIS

An acronym standing for Financial Advice and Intermediary Services, regulations aimed at protecting consumers by governing the provision of financial advice and intermediary services.

Information Silos

Isolated islands of data or information managed separately within an organization, leading to inefficiency and lack of synergy.