Compared to other investments, which of the following is not a disadvantage of investing in real assets? The initial amount of money is usually large The absence of a relatively efficient, liquid market High transaction and incidental costs All of the above are disadvantages The most significant advantage(s) of limited partnerships are: limited liability of limited partners, and direct assignment of profits and losses to the partners. unlimited liability of general partners. favorable tax treatment of capital gains and management participation features. None of the above

Compared to other investments, which of the following is not a disadvantage of investing in real assets? The initial amount of money is usually large The absence of a relatively efficient, liquid market High transaction and incidental costs All of the above are disadvantages The most significant advantage(s) of limited partnerships are: limited liability of limited partners, and direct assignment of profits and losses to the partners. unlimited liability of general partners. favorable tax treatment of capital gains and management participation features. None of the above

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 3MC: Which of the following is a disadvantage of the partnership form of organization? A. limited life B....

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Question

Compared to other investments, which of the following is not a disadvantage of investing in real assets?

The initial amount of money is usually large

The absence of a relatively efficient, liquid market

High transaction and incidental costs

All of the above are disadvantages

The most significant advantage(s) of limited partnerships are:

limited liability of limited partners, and direct assignment of profits and losses to the partners.

unlimited liability of general partners.

favorable tax treatment of capital gains and management participation features.

None of the above

Definition Definition Tax imposed by the government on the "gain" or increase in the value of an asset at the time of its sale by the owner. Capital gain is computed based on the purchase price and sale price of the asset. If the sale price of the asset is more than the purchase price, there is a gain on the sale of asset. A tax is imposed on such gain in accordance with the applicable tax rates at the time of sale.

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