Which of the Following Is an Advantage of Starting a New

question 129

Multiple Choice

Which of the following is an advantage of starting a new business as a partnership?

• A)The owners have limited personal liability.
• B)Compared to a corporation,a partnership has fewer government rules and regulations to comply with.
• C)Business profits are not taxed.
• D)A partnership can easily attain additional funding.

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Definitions:

Comprehensive Income

The total change in equity for a reporting period, including all revenues, gains, expenses, and losses.

Financial Flexibility

The ability of a firm to adapt its capital structure or operations to cope with financial challenges or to seize investment opportunities.

Objectives of Financial Reporting

The goals intended to be achieved through the disclosure of financial information, including providing insight into a company's financial health for decision-making purposes.

Internal Management

The process and practice of managing the internal operations and resources of an organization.