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 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.
Chapter10: Partnership Taxation
Section: Chapter Questions
Problem 23MCQ
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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.
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