21 which of the following is a true statement about the characteristics of partnersh 4310705

21) Which of the following is a true statement about the characteristics of partnerships?

A) In a limited-liability partnership, a wayward partner can create a large liability for the other partners.

B) General partners have mutual agency and limited liability.

C) Income and loss of the partnership “flows through” to the partners.

D) The partnership agreement must be in writing.

A) partners.

B) sole proprietors.

C) members.

D) stockholders.

23) Advantages of a corporation include:

A) a single owner.

B) the double taxation of distributed profits.

C) limited liability of the stockholders.

D) mutual agency.

24) Shareholders of a corporation:

A) receive one vote for each share of stock they own.

B) have unlimited liability.

C) have mutual agency.

D) receive dividends from the corporation without having to pay tax on the distribution.

25) An entity that is organized according to state law and in which ownership units are called stock is a:

A) proprietorship.

B) corporation.

C) partnership.

D) limited liability company.

26) An important fact to consider when determining how to organize a business is that:

A) members of an LLC have unlimited liability and are taxed like members of a partnership.

B) for accounting purposes, a proprietorship is a distinct entity.

C) the records of a partnership can include the partner's personal finances.

D) the proprietor and the proprietorship are separate legal entities.

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