Which of the following statements about forms of business organization is true?

Question

Which of the following statements about forms of business organization is true? a. A limited partnership is generally expensive to form. b. The primary advantages of a limited liability company are the means of taxation and the limits on the liabilities assumed by the owners. c. A sole proprietor can generally raise unlimited equity to finance his or her business activities. d. Under a general partnership, each partner's potential loss is limited to his or her investment in the firm but he or she has unlimited say over the daily operations of the partnership.

Explanation / Answer

statements which are true:

b. The primary advantages of a limited liability company are the means of taxation and the limits on the liabilities assumed by the owners.

d. Under a general partnership, each partner's potential loss is limited to his or her investment in the firm but he or she has unlimited say over the daily operations of the partnership.

(b)

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