Which of the Following Is an Advantage of a Partnership

question 7

Multiple Choice

Which of the following is an advantage of a partnership?

• A)Partnerships are less expensive to organize than a corporation.
• B)The owners of a partnership are generally exempted from personal taxes.
• C)The owners who contribute an asset to the partnership retain absolute claim on the asset.
• D)Partnerships have a higher cost of financial distress than those of a corporation.

---

Definitions:

Functional Fixedness

Failing to solve a problem as a result of fixation on a thing’s usual functions.

Artificial Intelligence

Refers to the simulation of human intelligence in machines that are programmed to think like humans and mimic their actions.

Heuristics

Mental shortcuts or rules of thumb that simplify decision making and problem-solving tasks, often sacrificing accuracy for speed.

Information-Processing

A cognitive approach that likens the mind to a computer and studies how people encode, store, process, and retrieve information.