What Is the Most Compelling Reason for the Creation of a Corporate

question 5

Multiple Choice

What is the most compelling reason for the creation of a corporate business entity?

• A) to extend director's liability in the event of bankruptcy
• B) to limit owners' liability in the event of bankruptcy
• C) to share joint liability in the event of bankruptcy
• D) to proportion liability in the event of bankruptcy

---

Definitions:

Left Tail Area

refers to the portion of a distribution curve to the left of a specified value, often associated with finding probabilities in statistical analysis.

Degrees of Freedom

In statistics, the number of independent values or quantities that can be assigned to a statistical distribution.

Distribution Table

A table that displays the frequency of various outcomes in a sample, often used in statistics to organize data.

Rule of Five

A statistical rule stating that if a sample size is very small (n=5), the median can serve as an estimate of the population mean under certain conditions.