Which of the following is not a correct statement regarding the advantage of the partnership entity form
Question:
Which of the following is not a correct statement regarding the advantage of the partnership entity form over the subchapter C corporation form?
a. A partnership typically has easier administrative and filing requirements than a C corporation.
b. Partnership income is subject to a single level of taxation; corporate income is double taxed.
c. Partnerships may specially allocate income and expenses among the partners, provided the substantial economic effect requirements are met; corporate dividends must be proportionate to shareholdings.
d. Partners in a general partnership have less personal liability for entity claims than shareholders of a C corporation.
e. All of the above are advantages of partnership taxation.
Foundations of Finance The Logic and Practice of Financial Management
ISBN: 978-0132994873
8th edition
Authors: Arthur J. Keown, John D. Martin, J. William Petty