One Common Reason for Partnerships to Convert to a Corporate

question 16

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 10 years.

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Definitions:

Alms

Charitable donations of money, food, or goods to the poor or needy; an act of virtue in many religions.

Assimilation

The process in which individuals or groups from different cultures are absorbed into a dominant culture and lose their original distinctiveness.

Traditional

Traditional refers to beliefs, customs, and practices that are handed down from one generation to another, representing a continuity of cultural heritage.

Religion

A structured set of beliefs, practices, and systems that relates humanity to spiritual, divine, or moral elements, often involving worship and a code of ethics.