Which of the following statements is CORRECT? Corporations are at a disadvantage relative to partnerships...
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Accounting
Which of the following statements is CORRECT? Corporations are at a disadvantage relative to partnerships because they have to file more reports to state and federal agencies, including the Securities and Exchange Administration, even if they are not publicly owned. A ( Attracting large amounts of capital is more difficult for partnerships than for 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. In a regular partnership, liability for other partners' misdeeds is limited to the amount of a particular partner's investment in the business. The limited partners in a limited partnership have voting control, while the general partner has operating control over the business. Also, the limited partners are D individually responsible, on a pro rata basis, for the firm's debts in the event of bankruptcy
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