Which of the Following Is Not an Option Available to a General

question 67

Multiple Choice

Which of the following is not an option available to a general partnership seeking capitalization?

• A) Borrowing money from one or more of the partners.
• B) Selling the right to a percentage of the profits to an investor.
• C) Selling ownership rights through the public markets.
• D) Borrowing money from a commercial lender.

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Definitions:

Acquisition Transaction

A deal or arrangement in which one company purchases another company or its assets.

Common Stock

A type of equity ownership in corporations, typically carrying voting rights and eligibility to share in dividends.

Par Value

The face value of a bond or stock as stated by the issuing company, which often bears no relation to its market value.

Fair Value

An estimate of the price at which an asset or liability could be bought or sold in an orderly transaction between market participants at the measurement date.