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.

---

Definitions:

Highly Competitive

A situation or environment where there is intense competition among participants, often leading to increased innovation or quality.

Highly Focused

Concentrating intensely on a specific task or objective without distraction.

Psychological Consequences

The affective and cognitive effects on an individual's psychological well-being due to certain events, actions, or conditions.

Frequent Headaches

A recurrent condition often characterized by a persistent throbbing or aching in the head.