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.

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Definitions:

Social Identity Theory

A psychological theory that examines the individual's sense of belonging to particular social groups and how it affects perceptions and behaviors.

Informal Groups

Naturally occurring groups within an organization, formed based on personal relationships or common interests rather than structured or organizational dictates.

Social Identity Theory

A psychological theory that examines the part of an individual's self-concept derived from perceived membership in a social group, influencing intergroup behavior.

Group Affiliations

The connections or associations an individual has with different groups, like social, professional, or religious organizations.