Corporate Finance
Simcha Barkai
Fall 2023
Quiz #1: Introduction
Question 1: What is the main distinction between a partnership and a Limited Liability Company
(LLC)?
partnership has full liability for the companies debts while in an llc the owner has limited
liability. llc can also be one owner where a partnership always has more than one person
Question 2: Describe one disadvantage of separating ownership from management.
conflicts of interest can arise between the owner and the one managing the company
Corporate Finance
Quiz #1: Introduction
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