Which statement about partnerships is most accurate?

Multiple Choice A partnership is a corporation with fewer than 100 owners. A major advantage of a partnership is that it offers all owners limited liability. A major drawback of a partnership is that it is difficult to terminate. Partnerships are taxed at the lowest corporate tax rate.

When comparing general partnerships to sole proprietorships, an advantage of partnerships is that they

Multiple Choice are less risky, because each partner is responsible for only a specified fraction of the firm's debts. are easier to terminate. cost less to organize. give the firm a stronger financial foundation.

A good reason why partners should spell out the details of their partnership arrangements in writing is

Multiple Choice the partnership is not a legally recognized business unless they do so. a written agreement will help reduce misunderstandings and disagreements among the partners. putting the agreement in writing will limit the liability of each partner to a specified level. doing so will make it easier to convert the business to a corporation at a later date.

One way to eliminate some of the risk of your partners making costly mistakes that could jeopardize your personal assets is to set up a

Multiple Choice master limited partnership. sole proprietorship. limited amount of time each can actively spend in the business. limited liability partnership.