Which of the following is an advantage of a partnership?
A)Partnerships are less expensive to organize than a corporation.
B)The owners of a partnership are generally exempted from personal taxes.
C)The owners who contribute an asset to the partnership retain absolute claim on the asset.
D)Partnerships have a higher cost of financial distress than those of a corporation.

Question

Quizplus · Accepted Answer

Partnerships are generally less expensive and bureaucratic to set up than corporations, which usually require formal articles of incorporation, bylaws, and meetings of shareholders.

Which of the Following Is an Advantage of a Partnership