Which of the following statements is CORRECT? O a. In a limited partnership, the limited partners have voting control, while the general partner has operating control over the business, and the limited partners are individually responsible, on a pro rata basis, for the firm's debts in the event of bankruptcy. O b. Partnerships have more difficulty attracting large amounts of capital than corporations because of such factors as unlimited liability, the need to reorganize when a partner dies, and the illiquidity (difficulty buying and selling) of partnership interests. O c. In a typical partnership, liability for other partners' misdeeds is limited to the amount of a particular partner's investment in the business. O d. A slow-growth company, with little need for new capital, would be more likely to organize as a corporation than would a faster growing company. O e. A major disadvantage of a partnership relative to a corporation is the fact that federal income taxes must be paid by the partners rather than by the firm itself.

Which of the following statements is CORRECT? O a. In a limited partnership, the limited partners have voting control, while the general partner has operating control over the business, and the limited partners are individually responsible, on a pro rata basis, for the firm's debts in the event of bankruptcy. O b. Partnerships have more difficulty attracting large amounts of capital than corporations because of such factors as unlimited liability, the need to reorganize when a partner dies, and the illiquidity (difficulty buying and selling) of partnership interests. O c. In a typical partnership, liability for other partners' misdeeds is limited to the amount of a particular partner's investment in the business. O d. A slow-growth company, with little need for new capital, would be more likely to organize as a corporation than would a faster growing company. O e. A major disadvantage of a partnership relative to a corporation is the fact that federal income taxes must be paid by the partners rather than by the firm itself.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Potential partners might not want to form a partnership because of the risk of having their personal property forfeited in favor of the business's creditors. O True O False
In a partnership, a capital deficiency occurs for a partner when Options: • His share in the losses of the partnership is more than his capital balance • Loan payable by the partnership to him greater than his capital balance • His solvency is lesser than his capital balance • His personal assets are less than his personal liabilities
Which of the following statements is most true? a. The liability for other partners’ wrong doings is limited to the amount a particular partner has invested in the partnership. b. Partnerships are formed in accordance with specific guidelines that include the filing of a formal written agreement to the government. c. A fast growing firm would be more probable to establish a partnership as its business form than would a slow growing firm. d.Corporations can easier attract investors than those of the partnership and sole proprietor businesses.
one who is limited as to how many partnerships he or she can a partner When a partner chooses to leave a partnership and the business continues with the remaining partners, this is called O dissociation O dissolution O disillusion O depression
How do you distinguish a partnership from a corporation? How do you distinguish a public partnership from a public corporation? If you were starting a business with a friend and only had a choice between a partnership and corporation, which would you choose and why?
Please indicate which of the following statements is true regarding types of business entities? Multiple Choice O None of the choices are true. Ownership in a partnership is represented by having shares of common stock. For accounting purposes a sole proprietorship is not a separate entity from its owner. Sole proprietorships are subject to double taxation.
Question One: State whether each of the following statements is true or false and correct the false statements: 1. General partnerships are not subject to taxes on its income. 2. Double taxation is one of the major disadvantages of partnerships. 3. In limited partnerships limited partner has the right to manage the business. 4. Mutual agency does not exist in partnerships. 5. Corporations can be formed by a verbal agreement.
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
A6) Finance The OIC Fiqh Academy has ruled that preference shares are not permissible. Below are among the reasons why preference shares are not permissible, except: A. Priority in liquidation, violates principle that losses should be borne by partners in proportion to their capital contribution B. Fixed rate of dividend C. Higher payout is acceptable D. The issues regarding a hierarchy of capital suppliers is not in the spirit of Islamic partnership
What is the main difference between organizing a real estate venture as a corporation versus a general partnership? How does a limited partnership have some of the characteristics of both?
If a partnership is liquidated, partners ( except for limited partners) are liable to the extent of their personal assets. In case a Corporation becane insolvent and decided to liquidate, would the owners (sharehorlders) also liable to the extend of their personal assets?
Which of the following statements is always true regarding accounting methods available to a partnership? A) If a partnership has a partner that is a personal service corporation, it cannot use the cash method. B) If a partnership is a tax shelter, it can use the cash method of accounting. C) If a partnership has a partner that is a C corporation, it cannot use the cash method. D) If a nontax-shelter partnership had average annual gross receipts of less than $26,000,000 (2021) for the last three tax years, it can use the cash method.