Which of the Following Statements Is CORRECT

question 30

Multiple Choice

Which of the following statements is CORRECT?

• A) Most businesses (by number and total dollar sales) are organized as partnerships or proprietorships because it is easier to set up and operate in one of these forms rather than as a corporation.However, if the business gets very large, it becomes advantageous to convert to a corporation, mainly because corporations have important tax advantages over proprietorships and partnerships.
• B) Due to limited liability, unlimited lives, and ease of ownership transfer, the vast majority of U.S.businesses (in terms of number of businesses) are organized as corporations.
• C) Most business (measured by dollar sales) is conducted by corporations in spite of large corporations' often less favorable tax treatment, due to legal considerations related to ownership transfers and limited liability.
• D) Large corporations are taxed more favorably than sole proprietorships.
• E) Corporate stockholders are exposed to unlimited liability.

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Definitions:

Gender Similarities Hypothesis

Hyde’s proposition that people of different genders are much more similar than they are different.

Hyde

A character within literature and popular culture often associated with dual personalities or hidden aspects of the self.

Kubler-Ross

Refers to the Kubler-Ross model, also known as the five stages of grief, developed by Elisabeth Kübler-Ross involving denial, anger, bargaining, depression, and acceptance.

Stage Model

A theoretical framework that describes a sequence of phases through which individuals or processes pass over time.