Asked by ESTELA LUCCHESI on Jun 28, 2024
Verified
By making a partnership a limited partnership,the partners have the following advantage of a corporation form of business
A) perpetual life
B) lower total taxes
C) can sell stock to public to obtain additional financing
D) limited liability
Limited Partnership
A business arrangement where one or more partners are liable only up to the amount of their investment, while at least one partner has unlimited liability.
Perpetual Life
The concept that an entity, usually a corporation, continues to exist indefinitely until it is legally dissolved, regardless of changes in ownership or management.
Limited Liability
A legal structure where a company's owners are protected from losing more money than they have invested in the company.
- Comprehend approaches to minimize income tax obligations for small enterprises.
- Realize the vital position of corporations in the economic framework of the U.S. and the aspects of ownership and control.
Verified Answer
TW
Tanties WorraweeJun 28, 2024
Final Answer :
D
Explanation :
By becoming a limited partnership, the partners can enjoy limited liability, which is a key advantage of a corporation form of business. This means that the partners' personal assets are protected from the debts and liabilities of the business. However, a limited partnership does not offer perpetual life or the ability to sell stock to the public for additional financing, and the total taxes may not necessarily be lower than other forms of business.
Learning Objectives
- Comprehend approaches to minimize income tax obligations for small enterprises.
- Realize the vital position of corporations in the economic framework of the U.S. and the aspects of ownership and control.