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QUESTION 9 Clearly STATE which of the following choices) is/are CORRECT and which are INCORRECT?...

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Accounting

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QUESTION 9 Clearly STATE which of the following choices) is/are CORRECT and which are INCORRECT? If a statement is incorrect, you must briefly explain why. (Note: You can write several full sentences in the answer boxes but keep the explanations to 5-30 words) a. 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 liquidity (difficulty buying and selling of partnership interests. b. In a regular partnership, lability for other partners' misdeeds is limited to the amount of a particular partner's investment in the business C. 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 d. In a limited partnership, the limited partners have voting control, while the general partner has operating control over the business. Also, the limited partners are individually responsible, on a pro rata basis for the firm's debts in the event of bankruptcy. e. A major disadvantage of all partnerships relative to all corporations is the fact that federal income taxes must be paid by the partners rather than by the firm itself

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