Which of the Following Is NOT an Advantage of a Partnership

question 1

Multiple Choice

Which of the following is NOT an advantage of a partnership?

• A) Partners' income taxes may be less than the income taxes would be on a corporation.
• B) Each partner has limited liability.
• C) It is possible to bring together more managerial skills than in a sole proprietorship.
• D) It is possible to bring together more capital than in a sole proprietorship.

Understand the "main purpose" rule in guarantee contracts and its implications for contract enforceability.

Recognize exceptions to the Statute of Frauds that allow for the enforceability of oral contracts.

Understand the role of memorandums or notes in evidencing oral contracts and their requirements.

Understand the impact of third-party benefits in contract law, including when an agreement is enforceable by or for the benefit of a third party.

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Definitions:

Return

Total monetary flow of an asset as a fraction of its price.

Investment

The action or process of allocating resources, usually money, with the expectation of generating an income or profit.

Real Discount Rate

The rate used to discount future cash flows to their present value, adjusting for inflation.

Nominal Discount Rate

The rate of interest quoted or advertised on a loan or investment, not adjusted for inflation.