One Common Reason for Partnerships to Convert to a Corporate

question 80

Multiple Choice

One common reason for partnerships to convert to a corporate form of organization is that the partnership:

• A)faces rapidly growing financing requirements.
• B)wishes to avoid double taxation of profits.
• C)has issued all of its allotted shares.
• D)agreement expires after ten years of use.

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Definitions:

International Students

Individuals who move to a different country than their own for the purpose of pursuing education.

Market Development

A strategy aimed at entering new markets or segments to expand a company’s customer base for its current products or services.

BCG Portfolio Analysis

A strategic business tool developed by the Boston Consulting Group to help organizations prioritize which products or units to invest in based on market growth and market share.

Market Growth Rate

The annual rate of growth of the specific market in which the product competes.