What is a possible disadvantage of forming a limited liability partnership (LLP) as opposed to remaining a general partnership?
A. Creation and continuation require compliance with statutory provisions.
B. Partners are subject to a broad personal liability shield.
C. LLPs are pass-through entities.
D. Termination of an LLP involves the same process as in a general partnership.
Answer: A. Creation and continuation require compliance with statutory provisions.
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Marriott used which of the following management science techniques to help improve profit by $120 million over two years?
A) optimization, decision analysis, and forecasting B) forecasting, queuing theory, and inventory analysis C) queuing theory, optimization, and inventory analysis D) forecasting, simulation, and optimization
Empirical studies have found that, across firms, Tobin's Q ratio initially increases with managerial ownership fraction, but beyond a critical level, the ratio decreases with further increases in managerial ownership
One argument for why this ratio decreases at higher managerial ownership levels is that: a. board directors no longer believe that they need to monitor management's incentives. b. fewer passive shareholders own the firm's stock. c. outside blockholders tend to be attracted to firms with high managerial ownership, and outside blockholder ownership generally destroys firm value. d. management can use their shares to leverage their entrenched position.