Which of the following forms of organization blends elements of partnerships and corporations?

 Which of the following is a characteristic of a limited partnership?

A) It allows one or more partners to have limited liability.

B) It requires one or more of the partners to be a general partner to whom the privilege of limited liability does not apply.

C) It prohibits the limited partners from participating in the management of the partnership.

D) All of the above.

Which of the following forms of organization blends elements of partnerships and corporations?

A) D.B.A.'s

B) Sole proprietorships

C) Limited liability companies (LLC's)

D) General partnership

Which of the following types of business forms is least risky to investors?

A) Sole proprietorship

B) Limited partnership

C) General partnership

D) A public corporation

Which forms of organization are free of initial legal requirements?

A) Sole proprietorship

B) General partnership

C) Corporation

D) Both A and B

For these types of organization, no distinction is made between business and personal assets.

A) Sole proprietorship

B) General partnership

C) Limited partnership

D) Both A and B

Which of the following is a significant disadvantage of a general partnership?

A) The cost of forming it is high.

B) Each partner is fully responsible for the liabilities incurred by the partnership.

C) There is a risk associated with the industry in which it operates.

D) Forming the business is very complex.