Ask Question
BusinessBusiness
13 March, 20:44

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

+2
Answers (1)
  1. 13 March, 21:06
    0
    The statement is: True.

    Explanation:

    Partnerships are organizations that share ownership of two or more people. Corporations, on the other hand, are owned by shareholders who decide how and who will run the business. Partnership owners are individually liable, implying that the owners' assets can be taken away in front of the debt.

    Debt or legal responsibility in companies is not individual. Liability is only dealt with at the company level. In reality, partnerships require reorganization when one of the partners is quitting or passing away, something that does not happen to corporations. For these factors, the majority of associations find it difficult to raise significant amounts of funds relative to companies.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “a. Attracting large amounts of capital is more difficult for partnerships than for corporations because of such factors as unlimited ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
The 2014 balance sheet of Sugarpova's Tennis Shop, Inc., showed long-term debt of $3.5 million, and the 2015 balance sheet showed long-term debt of $3.5 million. The 2015 income statement showed an interest expense of $160,000.
Answers (1)
Which of the following statements about changes in accounting estimates are correct? (Select all that apply.) a) A revision of an original estimate made in bad faith should be accounted for as a correction of an error.
Answers (1)
While industry forces have been favorable for a long time in the U. S. automotive industry, recent dynamics have lowered the profit potential of competing in this industry and thus reduced its attractiveness.
Answers (2)
On its income statement for a recent year, American Airlines Group, Inc., the parent company of American Airlines, reported a net loss of $1,834 million from operations.
Answers (1)
A company that produces a single product had a net operating income of $90,000 using variable costing and a net operating income of $125,750 using absorption costing.
Answers (2)
New Questions in Business
Katie needed to take out three loans. a) First, she paid $596.24 in interest on a nine-month loan for which the rate was 11%. How much money did she borrow? b) A year later, Katie borrowed $10,000 for three months.
Answers (1)
During the year, total liabilities increased $105,000 and stockholders' equity decreased $83,000. What is the amount of total assets at the end of the year?
Answers (1)
What is cosideration
Answers (1)
With the federal funds rate near zero and the economy still struggling, the Fed began buying 10-year Treasury notes and certain mortgage-backed securities to keep interest rates low. This policy is known as
Answers (1)
Sugar, Inc. sells $529,300 of goods during the year that have a cost of $428,600. Inventory was $30,083 at the beginning of the year and $34,338 at the end of the year.
Answers (2)
Home » Business » 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
Sign Up Forgot Password?