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

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Definitions:

Marginal Revenue

is the additional income received from selling one more unit of a product or service.

Surround Sound Systems

Audio systems designed to create a more immersive listening experience by using multiple speakers placed around a room to simulate a 3D sound environment.

Monopoly

A market structure characterized by a single seller offering a unique product or service with no close substitutes, leading to the ability to influence price.

Total Revenue

The complete amount of income a business receives from its operations, calculated by multiplying the price of goods by the quantity sold.