Until this year cheers inc. was organized as a partnership., Ask an Expert

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Until this year, Cheers Inc. was organized as a partnership. This year, the partners have decided to organize the business as a corporation. As a result of this change in organizational form, choose the statement that is most correct and describe why?

a. Cheers' shareholders (the ex-partners) will now have limited liability.

b. Cheers will now be subject to fewer regulations.

c. Cheers will now pay less in taxes.

d. Cheers' investors will now find it more difficult to transfer ownership.

e. Cheers will now find it more difficult to raise additional capital.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M973088

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