Which of the following statements is CORRECT a In a typical partnership

Question

Which of the following statements is CORRECT?

a. In a typical partnership, liability for other partners' misdeeds is limited to the amount of a particular partner's investment in the business.

b. In a limited partnership, the limited partners have voting control, while the general partner has operating control over the business, and the limited partners are individually responsible, on a pro rata basis, for the firm's debts in the event of bankruptcy.

c. A slow-growth company, with little need for new capital, would be more likely to organize as a corporation than would a faster growing company.

d. Partnerships have more difficulty attracting large amounts of capital than corporations because of such factors as unlimited liability, the need to reorganize when a partner dies, and the illiquidity (difficulty buying and selling) of partnership interests.

e. A major disadvantage of a partnership relative to a corporation is the fact that federal income taxes must be paid by the partners rather than by the firm itself.