financial management overview7

financial management overview7 - Partnership form i ....

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Partnership form Answer: d Diff: M i . Which of the following statements is most correct? a. In a partnership, liability for other partners’ misdeeds is limited to the amount a particular partner has invested in the business. b. Partnerships must be formed according to specific rules that include the filing of a formal written agreement with state authorities where the partnership does business. c. A fast-growth company would be more likely to set up a partnership for its business organization than would a slow- growth company. d. Partnerships have difficulty attracting capital in part because of the other disadvantages of the partnership form of business, including impermanence of the organization. e. A major disadvantage of a partnership as a form of business organization is the high cost and practical difficulty of its formation.
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Firm organization Answer: c Diff: M ii . Which of the following statements is most correct? a. Due to limited liability, unlimited lives, and ease of ownership
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