Limited partnerships are not as prevalent as corporations because
A) limited partners can lose up to three times the amount they invested in the partnership if the business goes bankrupt.
B) limited partnerships have the disadvantage of double taxation.
C) the general partner has no liability, making it difficult for the partnership to borrow money.
D) it is easier to transfer ownership by selling common stock than it is to sell partnership.

Question

Quizplus · Accepted Answer

Limited partnerships usually have a limited life span and are not as easy to transfer ownership as selling common stock in a corporation. Additionally, limited partnerships have additional complexities with respect to taxation and liability, which can make it less attractive for investors and potential partners.

Limited Partnerships Are Not as Prevalent as Corporations Because