Which of the Following Statements Is Incorrect

question 26

Multiple Choice

Which of the following statements is incorrect?

• A) Partnerships have unlimited liability.
• B) Most sole proprietors raise money by borrowing from banks.
• C) An advantage of sole proprietorships is that the owner has complete control.
• D) S corporations are considered a hybrid organization.

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Definitions:

Administered Vertical Marketing System

A coordinated marketing system where a dominant channel member organizes promotional activities and other aspects of the marketing mix without owning the production or distribution elements.

Reward Power

The capability to influence others' behavior by offering them positive incentives or benefits.

Channel Member

An entity that plays a role in the distribution process of products, from manufacturers to end consumers, including wholesalers, retailers, and distributors.

Compensation

Payment or benefits that an employee receives in return for their work, which can include salary, wages, benefits, and bonuses.