Which of the following is an advantage of a general partnership when compared to a corporation?

Which of the following is an advantage of a general partnership when compared to a corporation?

a.The partnership usually hires professional managers.

b.The partnership is relatively inexpensive to organize.

c.A partnership is more likely to have a positive net income.

d.Creditors to a partnership cannot attach personal assets of partners.

Answer

Correct Answer : b) The Partnership is relatively inexpensive to organize.

Reason: A Partnership is easy and less complex, it involves less compliances, therefore it is relatively inexpensive to organize.

Other options wrong because :

a) A Corporation hires professional managers not partnership.

c) A Corporation is more likely to have a positive Net Income.

d) Creditors of a Corporation cannot attach personal assets

In case of any doubts or issues, please do comment below

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