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:

Stockholders' Equity Account

An account on a company's balance sheet that represents the equity stake that shareholders have in the company.

Shares Issued

The total number of shares that have been allocated and distributed by a company to shareholders.

Issued Common Stock

Shares that have been allocated to shareholders as part of a company's capital.

Additional Paid-in Capital

The amount of money that shareholders pay in excess of the par value of shares during the issuance of stock.