Which of the Following Statements About the Corporate Form of Business

question 48

Multiple Choice

Which of the following statements about the corporate form of business organization is incorrect?

• A)The corporation is the easiest form of business organization to establish.
• B)In the United States, corporations generate a significantly greater percentage of total annual sales than either partnerships or proprietorships.
• C)Corporations generally are larger than either partnerships or proprietorships.
• D)One of the most important features of the corporate form of business organization is that stockholders have limited liability.
• E)None of the above.

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Definitions:

Apportions Damages

The process of dividing up and assigning responsibility for monetary compensation among different parties in a legal case.

Degree of Fault

The level of responsibility or negligence attributed to each party involved in a legal matter or accident.

Strict Liability

A legal doctrine that holds individuals or entities liable for damages and harm caused by their actions, regardless of fault or intention.

Comment (m)

Written or spoken remarks expressing an opinion or reaction to something.