Which of the Following Statements Is CORRECT

question 37

Multiple Choice

Which of the following statements is CORRECT?

• A) In a regular partnership, liability for other partners' misdeeds is limited to the amount of a particular partner's investment in the business.
• B) Attracting large amounts of capital is more difficult for partnerships than for corporations because of such factors as unlimited liability, the need to reorganize when a partner dies, and the illiquidity (difficulty buying and selling) of partnership interests.
• C) A slow-growth company, with little need for new capital, would be more likely to organize as a corporation than would a faster growing company.
• D) The limited partners in a limited partnership have voting control, while the general partner has operating control over the business.Also, the limited partners are individually responsible, on a pro rata basis, for the firm's debts in the event of bankruptcy.
• E) A major disadvantage of all partnerships compared to all corporations is the fact that federal income taxes must be paid by the partners rather than by the firm itself.

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Definitions:

Categories Of Stressors

Different groups or types of stress-causing factors, often classified by source or effect on the individual.

Catastrophes

Large-scale disasters or events causing great and often sudden damage or suffering; these can be natural like earthquakes or man-made like wars.

Significant Life Changes

Major events or transitions in an individual's life that require considerable adaptation and can have profound effects on well-being.

Daily Hassles

Minor and routine challenges or annoyances that, cumulatively, can impact an individual's stress level and overall health.