Soru
Which type of partnership acts much like a corporation in that it sells shares (partnership interests)to investors on public markets? A. Professional partnership B. Combined limited partnership C. Cooperative partnership D. Master limited partnership E. Publicly held partnership
Çözüm
4.2
(306 Oylar)
Göksel
Usta · 5 yıl öğretmeni
Uzman doğrulaması
Cevap
'D'
Daha Fazla
## Step 1The question is asking us to identify the type of partnership that operates in a manner similar to a corporation, specifically in terms of selling shares to investors on public markets. ## Step 2A Master Limited Partnership (MLP) is a type of business structure that combines the tax benefits of a partnership with the liquidity of publicly traded corporations. This means that MLPs can sell shares to investors on public markets, similar to corporations.## Step 3MLPs are typically used for businesses that generate significant cash flow, such as those in the energy sector. The structure of an MLP allows it to avoid corporate income tax by passing through most of its income to the partners, who then pay personal income tax on their share of the profits.## Step 4The other options, such as Professional partnership, Combined limited partnership, Cooperative partnership, and Publicly held partnership, do not operate in the same way as a corporation in terms of selling shares on public markets.