Bertrand Runs a Small Moving Company as a Sole Proprietorship

question 63

Multiple Choice

Bertrand runs a small moving company as a sole proprietorship and is considering operating his business through a corporation.What is a disadvantage of the corporation as a business form that Bertrand should consider before proceeding?

• A) It is difficult to transfer ownership.
• B) Its shareholders cannot be directors.
• C) There are higher costs associated with filing fees and legal costs.
• D) It has entirely secured debt arrangements.

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Definitions:

Rewards

Benefits, both intrinsic and extrinsic, given to individuals or groups for achieving specific goals or performing at a high level.

Self-actualization

A psychological state or level of growth where an individual realizes and fulfills their own potential and capabilities.

Maslow's Hierarchy

A psychological theory proposed by Abraham Maslow that categorizes human needs into a five-tier model in the shape of a pyramid, starting from basic physiological needs to self-actualization at the top.

McClelland

David McClelland, a psychologist known for his work on motivation and the theory of Needs, including Achievement, Affiliation, and Power.