Which of the Following Is True of Partnerships and Corporations

question 6

Multiple Choice

Which of the following is true of partnerships and corporations?

• A) Partnerships are easier to form when compared to corporations.
• B) All the shareholders in a publicly held corporation have equal rights in management and conduct of business.
• C) Partners can easily transfer their interest in partnerships through stocks when compared to corporations.
• D) Ownership and control of partnerships are separated.
• E) A corporation is a conduit for income and is not taxed as a separate entity.

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Definitions:

Units Sold

A measure of the quantity of inventory items that a company has sold to its customers within a particular period.

Prime Cost

The combined cost of direct materials and direct labor involved in manufacturing a product.

Period Costs

Expenses directly tied to a specific time period, such as rent, utilities, and administrative salaries, and not directly to the production process.

Units Sold

The number of individual items that have been sold over a specified period.