Pascal and Robert need to decide whether to operate their business as a general partnership or private
Question:
Pascal and Robert need to decide whether to operate their business as a general partnership or private limited company. They have received the following advice from consultant but they are not sure that the advice is accurate.
1. A private limited company may offer its shares for sale to the public, so it is easier to raise new finance as such a company rather than as a general partnership
2. If a general partner dies then, in the absence of contrary agreement, the partnership ceases to exist, whereas a private limited company has perpetual succession
Identify whether each statement made by the consultant is accurate or not accurate
A. 1. Accurate 2. Not accurate
B. 1. Not accurate 2. Accurate
C. 1. Accurate 2. Accurate
D. 1. Not accurate 2. Not accurate
Business Statistics a decision making approach
ISBN: 978-0133021844
9th edition
Authors: David F. Groebner, Patrick W. Shannon, Phillip C. Fry