Which of the following is an advantage of a general partnership when compared to a corporation? a.) The partnership is

Question

Which of the following is an advantage of a general partnership when compared to a corporation? a.) The partnership is more likely to have a net income. b.) The partnership is relatively inexpensive to organize. c.) Creditors to a partnership cannot attach personal assets of partners. d.) The partnership usually hires professional managers.

Help In Homework · Accepted Answer

Let's evaluate each statement and find which statement is true. Statement True or False Explanation a.) The partnership is more likely to have a net income. False Net income is not generally affected by the business' structure b.) The partnership is relatively inexpensive to organize. True Partnerships generally have lower startup costs compared to corporations c.) Creditors to a partnership cannot attach personal assets of partners. False General partner's assets are available to creditors to pay off debts d.) The partnership usually hires professional managers. False Partnerships are generally less complicated in structure and are more likely to be managed by their owners. We find that the correct answer is b.) The partnership is relatively inexpensive to organize.

Why Choose Us?

0% AI Guarantee

24/7 Support

Plagiarism Free

Expert Tutors

100% Confidential

On-Time Delivery

Which of the following is an advantage of a general partnership when compared to a corporation? a

Expert Solution

Archived Solution

Statement	True or False	Explanation
a.) The partnership is more likely to have a net income.	False	Net income is not generally affected by the business' structure
b.) The partnership is relatively inexpensive to organize.	True	Partnerships generally have lower startup costs compared to corporations
c.) Creditors to a partnership cannot attach personal assets of partners.	False	General partner's assets are available to creditors to pay off debts
d.) The partnership usually hires professional managers.	False	Partnerships are generally less complicated in structure and are more likely to be managed by their owners.