Which of the Following Is a Reason to Use a Partnership

question 33

Multiple Choice

Which of the following is a reason to use a partnership as the legal form of a business?

• A)Partnerships avoid the issue of mutual agency.
• B)Partnerships avoid the issue of unlimited liability.
• C)Partnerships avoid the issue of double-taxation faced by corporations.
• D)Partnerships avoid the difficulty of raising capital.

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Definitions:

Leading

The act of guiding, directing, or influencing others towards the achievement of goals or objectives.

Interchangeable Words

Words that can be substituted for each other in specific contexts without changing the meaning of the sentences in which they are used.

Effectiveness

The degree to which something is successful in producing a desired result or outcome.

Efficiency

The ratio of useful output to total input, used as a measure of the effectiveness of a system at converting inputs into useful outputs.