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Why is it usually safer to invest in corporate stocks than to become a partner in a business?
A. It is more likely that a partner will be dishonest than it is that a corporation will be unprofitable.
B. Corporations pay all of their profits to the stockholders, while partnerships do not.
C. Few partnerships ever succeed in making a profit.
D. Partnerships have unlimited liability, while corporations have limited liability.
It is usually safer to invest in corporate stocks than become a partner in a business because B. Corporations pay all of their profits to the stockholders, while partnerships do not.
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