One Drawback of Switching from a Partnership to the Corporate

question 36

Multiple Choice

One drawback of switching from a partnership to the corporate form of organization is the following:

• A) It subjects the firm to additional regulations.
• B) It cannot affect the amount of the firm's operating income that goes to taxes.
• C) It makes it more difficult for the firm to raise additional capital.
• D) It makes the firm's investors subject to greater potential personal liabilities.
• E) It makes it more difficult for the firm's investors to transfer their ownership interests.

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Definitions:

Point Manual

A document or guide that outlines a system for evaluating jobs or positions within an organization based on various criteria.

Relative Worth

The perceived value or importance of something or someone when compared with others.

Total Points

A system used in various contexts, such as competitive scoring or evaluation, where a cumulative tally represents performance, achievement, or value.

Wage Curve

A curve in a scattergram representing the relationship between the relative worth of jobs and wage rates.