11 Questions
What is a major difference between a general partnership and a limited partnership?
Requirement for a formal agreement
What is a benefit of having multiple partners in a partnership?
Distributed workload and combined expertise
What is a disadvantage of partnerships?
Difficulty in transferring ownership
What is a risk that partners in a partnership face?
Full personal liability for business debts
What is an advantage of forming a partnership compared to other business structures?
Easy to establish
What can be a result of disagreements between partners?
A halt in business operations
What is a key characteristic of a partnership?
It is set up between two or more individuals with similar skill sets
What is a major advantage of a corporation?
Owners are not responsible for business debts
What is a disadvantage of a C corporation?
Double taxation
Why might shareholders sell shares in a corporation?
To raise additional funds for the business
What happens to profits in a corporation before distribution to shareholders?
The corporation pays taxes on them
Learn about the differences between general and limited partnerships, their advantages, and responsibilities. Understand the roles and obligations of partners in a business partnership.
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