Advanced Accounting
14th Edition
ISBN: 9781260247824
Author: Joe Ben Hoyle, Thomas F. Schaefer, Timothy S. Doupnik
Publisher: RENT MCG
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Question
Chapter 14, Problem 1P
To determine
Identify the correct statement for not being a reason for the popularity of partnerships as a legal form for businesses.
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Which of the following is a reason for the popularity of partnerships as a legal form for businesses?
Partnerships may be formed merely by an oral agreement.
Partnerships can more easily generate significant amounts of capital.
Partnerships avoid the double taxation of income that is found in corporations.
In some cases, losses may be used to offset gains for tax purposes.
Which of the following is a reason to use a partnership as the legal form of a business?
A.
Partnerships avoid the difficulty of raising capital.
B.
Partnerships avoid the issue of mutual agency.
C.
Partnerships avoid the issue of double-taxation faced by corporations.
D.
Partnerships avoid the issue of unlimited liability.
19. Which of the following statements is not correct?
A. As a rule, co-ownership is not subject to income tax because the activities of the co-owners are limited to the preservation and enjoyment of the property and the collection of the income therefrom.
B. All partnerships, no matter how created or organized are considered corporations subject to corporate income tax.
C. When the co-owners invest the income of the property co-owned in a business or any income-producing properties or activities constituting themselves into a business partnership, such partnership is consequently subject to tax as a corporation.
D. A co-owner is subject to income tax on his share in the net income of the co-ownership actually or constructively received.
Chapter 14 Solutions
Advanced Accounting
Ch. 14 - Prob. 1QCh. 14 - Prob. 2QCh. 14 - Prob. 3QCh. 14 - Prob. 4QCh. 14 - Prob. 5QCh. 14 - Prob. 6QCh. 14 - Prob. 7QCh. 14 - Prob. 8QCh. 14 - Prob. 9QCh. 14 - Prob. 10Q
Ch. 14 - Prob. 11QCh. 14 - Prob. 12QCh. 14 - What is a partnership dissolution? Does...Ch. 14 - Prob. 14QCh. 14 - Prob. 15QCh. 14 - Prob. 16QCh. 14 - Prob. 17QCh. 14 - When a partner withdraws from a partnership, why...Ch. 14 - Prob. 1PCh. 14 - Prob. 2PCh. 14 - Prob. 3PCh. 14 - Prob. 4PCh. 14 - Prob. 5PCh. 14 - Prob. 6PCh. 14 - Prob. 7PCh. 14 - Prob. 8PCh. 14 - Prob. 9PCh. 14 - Prob. 10PCh. 14 - Prob. 11PCh. 14 - Prob. 12PCh. 14 - Prob. 13PCh. 14 - Prob. 14PCh. 14 - Prob. 15PCh. 14 - Prob. 16PCh. 14 - Prob. 17PCh. 14 - Prob. 18PCh. 14 - Prob. 19P
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