Which of the Following Statements Is CORRECT

question 45

Multiple Choice

Which of the following statements is CORRECT?

• A) Corporations are at a disadvantage relative to partnerships because they have to file more reports to state and federal agencies, including the Securities and Exchange Administration, even if they
• Are not publicly owned.
• B) In a regular partnership, liability for the firm's debts is limited
• To the amount a particular partner has invested in the business.
• C) A fast-growth company would be more likely to set up as a partnership for its business organization than would a slow-growth
• Company.
• D) Partnerships have difficulty attracting capital in part because of their unlimited liability, the lack of impermanence of the
• Organization, and difficulty in transferring ownership.
• E) A major disadvantage of a partnership relative to a corporation as a form of business organization is the high cost and practical
• Difficulty of its formation.

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Definitions:

Edible Fruiting Body

The part of a fungi or plant that is consumed for food, typically including structures like mushrooms or the fruit of flowering plants.

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A naturally occurring psychedelic compound found in certain species of mushrooms, known for its psychological effects.