One Drawback of Switching from a Partnership to the Corporate

question 43

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.

---

Definitions:

Unique Identity

Unique identity refers to the distinctive characteristics or attributes that make an individual, group, or entity different from others.

Unique Identity

A distinct characteristic or combination of characteristics that distinguishes an individual, group, or entity from others.

Institutional Adaptation

Institutional adaptation refers to the adjustments that institutions make to cope with external shifts or internal developments, aiming to maintain stability and continue serving their functions effectively.

Multibased Socialization

The process through which individuals learn and adopt the values, norms, and required behaviors of multiple groups within an organization.