Limited Partnerships Are Not as Prevalent as Corporations Because

question 77

Multiple Choice

Limited partnerships are not as prevalent as corporations because

• A) limited partners can lose up to three times the amount they invested in the partnership if the business goes bankrupt.
• B) limited partnerships have the disadvantage of double taxation.
• C) the general partner has no liability, making it difficult for the partnership to borrow money.
• D) it is easier to transfer ownership by selling common stock than it is to sell partnership.

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Definitions:

Signature Card

A document signed by an account holder at a financial institution that provides a specimen signature for the purpose of verifying future transactions.

ABA Code

A nine-digit identification number assigned to banks in the United States by the American Bankers Association, used for routing checks and electronic payments.

Federal Reserve District

One of the twelve regions established by the Federal Reserve Act, each with a Federal Reserve Bank, to regulate and oversee banking operations in the United States.

Routing Number

A unique nine-digit code used to identify a banking institution in the United States, essential for processing electronic transfers and checks.