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.

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Definitions:

Terminal Disease

A condition or illness that is progressive and incurable, inevitably leading to death.

Anger

A strong feeling of annoyance, displeasure, or hostility.

Denial

A psychological defense mechanism wherein individuals refuse to accept reality or facts, often as a way to avoid coping with unpleasant emotions.

Depression

A mental health disorder characterized by persistently depressed mood or loss of interest in activities, causing significant impairment in daily life.