Which of the Following Is an Advantage of a Partnership

question 13

Multiple Choice

Which of the following is an advantage of a partnership?

• A) Partnerships are less expensive to organize than corporations.
• B) The owners of a partnership are generally exempted from personal income taxes.
• C) The owners who contribute an asset to the partnership retain absolute claim on the asset.
• D) Mutual agency creates personal obligations for each partner.

---

Definitions:

Shareholders

Individuals or entities that own shares in a corporation, thus holding a portion of the company's equity.

Proxy Contests

A competition for the proxy votes of shareholders, typically aimed at gaining control of the company's board of directors.

Shareholder Votes

The process by which company shareholders exercise their right to vote on corporate matters, typically during annual general meetings.

Management

The process of directing and controlling a group or organization to achieve set goals, involving planning, organizing, leading, and controlling resources.