CFIN -STUDENT EDITION-ACCESS >CUSTOM<
6th Edition
ISBN: 9780357752951
Author: BESLEY
Publisher: CENGAGE C
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Chapter 1, Problem 14PROB
Summary Introduction
To determine: why hybrid forms of businesses have evolved over time
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What are the advantages of operating a business as a partnership rather than as a corporation? What are the disadvantages?
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How does running a company as a partnership as opposed to a corporation benefit the parties involved? What are the drawbacks of this approach?
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- Which of the following legal forms of organization is most expensive to organize? O corporations O limited partnership O sole proprietorships O partnershipsarrow_forward1.What are the main advantages of proprietorships, partnerships, and limited liability companies? 2.What are the disadvantages of a partnership over a limited liability company form of organization for a profit-making business?arrow_forwardCompare the potential for agency problems in sole proprietorships, partnerships, and corporations. In light of your analysis, why is the corporate form of organizations so popular?arrow_forward
- What choices are available to a group of persons creating a business? Why is it possible that a partnership is not the optimal company structure? What additional possibilities do they have?arrow_forwardThe concept of an "artificial being" refers to which form of business organization? a. Partnership * O Partnership O Sole proprietorship O Corporation O Limited partnershiparrow_forwardWhich form of business structure typically has the greatest potential for agency problems? Limited partnership General partnership Sole proprietorship Limited liability company Corporationarrow_forward
- Highlight differences between partnership and limited company?arrow_forwardWhat are the main advantages of a company compared to a sole trader and a partnership?arrow_forwardWhat are the benefits of the corporation in comparison with the partnership and proprietorship structures? How is equity treated and reported differently in this structure?arrow_forward
- What is a corporation? Why might founders have chosen to form a corporation rather than a partnership? What are the advantages and disadvantages of incorporation?arrow_forwardWhy do partnerships dissolve?arrow_forwardThe major advantage of a regular partnership or a corporation as a form of business organization is the fact that both offer their owners limited liability, whereas proprietorships do not.a.True/.Falsearrow_forward
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