Which of the Following Is a Benefit of Forming a Corporation

question 59

Multiple Choice

Which of the following is a benefit of forming a corporation?

• A)Corporations can be double taxed.
• B)Owners of a corporation are passive investors.
• C)Owners of a corporation are subject to unlimited liability.
• D)Corporations can offer stock options to employees.

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Definitions:

Dehydrating

The process of removing water from a substance or compound, often to drive a chemical reaction or preserve materials.

Mechanism

The detailed step-by-step process or pathway by which a chemical reaction occurs, including the rearrangements of bonds and intermediate stages.

Reaction

A process in which substances interact to form new products, involving the reorganization of atoms or groups of atoms.

Ammonia

A compound of nitrogen and hydrogen with the formula NH3, characterized by its pungent smell and used as a fertilizer and cleaning agent.