Corporation Partnership Sole Proprietorship Number of Owners many 2 or more ? Life Liability Tax Span unlimited limited double limited unlimited single limited unlimited single What is the difference in terms of liability between a partnership and a corporation? A A partnership has unlimited liability because they are only taxed once by the government. B A corporation has limited liability because the responsibility falls on the company and not the owner. CA corporation has unlimited liability because the life of the business does not rely on the owner. DA partnership has limited liability because the profits are split between partners.
Corporation Partnership Sole Proprietorship Number of Owners many 2 or more ? Life Liability Tax Span unlimited limited double limited unlimited single limited unlimited single What is the difference in terms of liability between a partnership and a corporation? A A partnership has unlimited liability because they are only taxed once by the government. B A corporation has limited liability because the responsibility falls on the company and not the owner. CA corporation has unlimited liability because the life of the business does not rely on the owner. DA partnership has limited liability because the profits are split between partners.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:Types of Business Organization
Number of
Life
Liability Tax
Owners
Span
many
unlimited limited double
2 or more
limited unlimited single
limited unlimited single
Corporation
Partnership
Sole
Proprietorship
?
What is the difference in terms of liability between a partnership and a corporation?
A A partnership has unlimited liability because they are only taxed once by the government.
B A corporation has limited liability because the responsibility falls on the company and not the owner.
C A corporation has unlimited liability because the life of the business does not rely on the owner.
DA partnership has limited liability because the profits are split between partners.
Expert Solution
Step 1: Introduction to Partnership Firm
A partnership firm is an entity wherein two or more individuals and eligible entities come together and form a single entity which is in a way a conjoint entity between the parties concerned.
The parties are called partners and the firm so emerged is called as Partnership firm. In a partnership firm, the partners are jointly and severally responsible for liabilities
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