GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which statement about forming a corporation Is FALSE
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Is a formal and legal arrangement
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Must file permission from the government
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Write your corporate bylaws
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Have for obligation a partnership
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Explanation:
Detailed explanation-1: -C. Correct. In general, partners in a partnership would be responsible for the firm’s liability by their personal assets as well. This feature of a partnership is similar to a sole proprietorship.
Detailed explanation-2: -Partners are ‘jointly and severally liable’ for the firm’s debts. This means that the firm’s creditors can take action against any partner. Also, they can take action against more than one partner at the same time.
There is 1 question to complete.