The Advantages of the Partnership Form of Business Organization, Compared

question 11

Multiple Choice

The advantages of the partnership form of business organization, compared to corporations, include which of the following?

• A) Single taxation.
• B) Ease of raising capital.
• C) Mutual agency.
• D) Limited liability.
• E) Difficulty of formation.

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Definitions:

Consolidated Income Tax Return

A single income tax return filed by a group of affiliated corporations, treating the entire group as a single taxpayer.

Subsidiaries

Companies that are controlled by another company, known as the parent company, through ownership of a majority of voting stock.

Separate Return

A tax return filed by an individual or entity separately from other entities or individuals, particularly in the context of married couples filing separately.

Mutual Ownership

A type of ownership where two or more parties jointly own an asset or a company, sharing in its risks and profits.