Which of the Following Is an Advantage of a General

question 96

Multiple Choice

Which of the following is an advantage of a general partnership when compared to a corporation?

• A) A partnership is more likely to have a positive net income.
• B) The partnership is relatively inexpensive to organize.
• C) Creditors to a partnership cannot attach personal assets of partners.
• D) The partnership usually hires professional managers.

---

Definitions:

Interest-Rate Cost

The cost incurred by an individual or entity due to borrowing funds, determined by the rate of interest on the borrowed amount.

Marginal Utility

The additional enjoyment or gain achieved by consuming another unit of a good or service.

Total Utility

The total satisfaction or benefit derived from consuming a given quantity of goods or services.

Budget

An estimate of income and expenditure for a set period of time, often used by governments, businesses, and individuals to allocate resources.