Vidyalelo
Commerce · Q155

Business and Commerce

Graduate and Post Graduate · Commerce · question 155

Q155

A partnership firm cannot raise funds through _________.

A.
bank loan
B.
partners loan
C.
Debentures
Answer
D.
partners capital

Answer: Option C

Solution

Answer: Option C
Solution:
A partnership firm cannot raise funds through Debentures. A partnership passes through its taxable income (or loss) to its investors, thereby avoiding double taxation and allowing the partnership the option to retain working capital for growth.