Identify which of the following statements is true.
a. caleb corporation is owned by a mother and her two daughters. it reports $100,000 of rental income; $30,000 of depreciation, interest, and property taxes on the rental real estate; and $10,000 of dividend income. caleb corporation is classified as a personal holding company.
b. the personal holding company tax is levied to prevent closely held corporations from sheltering passive income.
c. luke corporation is owned by a father and his son. the corporation employs 10 individuals to provide public accounting services. father and son make all of the work assignments for the professional employees. the professional fees earned by the corporation are personal holding company income.
d. all of the above are false.

Which of the following statements is correct? a major disadvantage of a partnership relative to a corporation is the fact that federal income taxes must be paid by the partners rather than by the firm itself. in a typical partnership, liability for other partners’ misdeeds is limited to the amount of a particular partner’s investment in the business.true in a limited partnership, the limited partners have voting control, while the general partner has operating control over the business, and the limited partners are individually responsible, on a pro rata basis, for the firm’s debts in the event of bankruptcy. partnerships have more difficulty attracting large amounts of capital than corporations because of such factors as unlimited liability, the need to reorganize when a partner dies, and the illiquidity of partnership interests.