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Most Partnerships Have Difficulty Attracting Substantial Amounts of Capital

Question 43

Multiple Choice

Most partnerships have difficulty attracting substantial amounts of capital. This is generally not a problem for a slow growing business. But if a business's products or services really catch on, the difficulty in attracting capital becomes a real drawback. For these reasons, many growth companies, which begin life as a proprietorship or partnership, at some point find it necessary to convert to a corporation. Eugene F. Brigham, Financial Management: Theory and Practice


A) Argument; conclusion: This is generally not a problem ... business.
B) Nonargument.
C) Argument; conclusion: But if a business's products ... becomes a real drawback.
D) Argument; conclusion: Many growth companies ... to convert to a corporation.
E) Argument; conclusion: Most partnerships have difficulty ... amounts of capital.

Correct Answer:

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