Question

Which of the following statements are TRUE when comparing a corporation and a limited partnership?I A corporation is a taxable entityII A partnership is a taxable entityIII A corporation allows for the flow through of gain and lossIV A partnership allows for the flow through of gain and loss

Answer 1

Answer: I. A corporation is a taxable entity.

IV. A partnership allows for the flow through of gain and loss

Explanation:

A corporation is referred to as a legal entity that is created by stockholders, individuals, or shareholders, with the main aim of profit making while a limited partnership occurs when there are two or more partners that go into business together, it should be noted that either one partner or more will be are liable only to their investment amount

When comparing a corporation and a limited partnership, the options that are true are:

• A corporation is a taxable entity.

• A partnership allows for the flow through of gain and loss