Which of the Following Is a Difference Between Corporations and Partnerships

question 9

Multiple Choice

Which of the following is a difference between corporations and partnerships?

• A) Partnerships are subject to double taxation; corporations are not.
• B) With partnerships, ownership rights are divisible and easily transferable; this is not true for corporations.
• C) Corporate owners face limited liability; owners of partnerships do not.
• D) Corporations always have more owners than partnerships.

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Definitions:

Reasoning

The process of thinking about something in a logical way in order to form a conclusion or judgment.

Inductive

An intellectual procedure that involves synthesizing a number of premises, deemed true or usually validated, to achieve a distinct conclusion.

Prosocial Behavior

Actions intended to benefit others, including helping, sharing, donating, cooperating, and volunteering.

Subcontrary Propositions

In traditional logic, propositions that cannot both be false but can both be true.