The Avocado Inc. operates as a partnership. Recently, its partners have decided

Question

The Avocado Inc. operates as a partnership. Recently, its partners have decided to convert the business into a corporation. Which of the following statements is correct? Select one: O a. Assuming the firm is profitable, none of its income will be subject to federal income taxes O b. The company will probably be subject to fewer regulations and required disclosures. O c. Company investors will be exposed to less liability, but they will find it more difficult to transfer their ownership O d. The firm will find it more difficult to raise additional capital to support its growth. O e. Company shareholders (the ex-partners) will now be exposed to less liability

Explanation / Answer

Conversion of partnership firm into Company

if partners want to convert partnership firm into company they follow all rules regulation accordingly due company act applicability in case of company so need to disclosure as per company registrar rules so here

b should be right answer

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