Ypes of Partnerships

se11. Business appliCation ▶ Indicate whether each statement that follows is a reflection of (a) normal partnership (b) limited partnership, (c) joint venture, or (d) S corporation.

1.    A special type of partnership that, like corporations, confines the limited partner’s potential loss to the amount of his or her investment.

2.    A form of organization that has the disadvantage of unlimited liability.

3.    An association formed by two or more entities for the purpose of achieving a specific goal.

4.    A form of organization that makes it difficult to raise large amounts of capital.

5.    A form of corporation that is treated as a partnership and pays no federal income taxes.