Which of the following statements is CORRECT? a. The limited partners in a limited partnership have voting control, while the general partner has operating control over the business. Also, the limited partners are individually responsible, on a pro rata basis, for the firm's debts in the event of bankruptcy. b. Attracting large amounts of capital is more difficult for partnerships than for corporations because of such factors as unlimited liability, the need to reorganize when a partner dies, and the illiquidity (difficulty buying and selling) of partnership interests. c. A major disadvantage of all partnerships compared to all corporations is the fact that federal income taxes must be paid by the partners rather than by the firm itself. d. In a regular partnership, liability for other partners' misdeeds is limited to the amount of a particular partner's investment in the business. e. A slow-growth company, with little need for new capital, would be more likely to organize as a corporation than would a faster growing company.

The correct answer is letter "B": Attracting large amounts of capital is more difficult for partnerships than for corporations because of such factors as unlimited liability, the need to reorganize when a partner dies, and the illiquidity (difficulty buying and selling) of partnership interests.

Explanation:

Partnerships are businesses in which two or more individuals share ownership. On the other hand, Corporations are owned by shareholders who decide how and who will manage the business. Partnerships owners liability is individual, implying in front of debt the personal assets of the owners can be taken away.

In Corporations, debt or legal responsibility is nor individual. Liability is treated only at the corporate level. Besides, partnerships require to reorganize when one of the partners retires or passes away something that does not happen with corporations. For such reasons, it most cases it is difficult for partnerships to obtain funds in large amounts compared to corporations.