Investors are more willing to put money into limited liability companies than partnerships because: OOOO The US government reimburses shareholders for any losses from investing in limited liability companies. Partnerships require a close relationship with other entrepreneurs. Partnerships are limited to a maximum of two investors. Only their investment in the company is at risk if the business fails.
Investors are more willing to put money into limited liability companies than partnerships because: OOOO The US government reimburses shareholders for any losses from investing in limited liability companies. Partnerships require a close relationship with other entrepreneurs. Partnerships are limited to a maximum of two investors. Only their investment in the company is at risk if the business fails.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Investors are more willing to put money into limited liability companies than partnerships because:
The US government reimburses shareholders for any losses from investing in limited liability companies.
Partnerships require a close relationship with other entrepreneurs.
Partnerships are limited to a maximum of two investors.
Only their investment in the company is at risk if the business fails.
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