Which of the Following Could Explain Why a Business Might

question 35

Multiple Choice

Which of the following could explain why a business might choose to operate as a corporation rather than as a sole proprietorship or a partnership?

• A) Corporations generally find it relatively difficult to raise large amounts of capital.
• B) Less of a corporation's income is generally subjected to taxes than would be true if the firm were a partnership.
• C) Corporate shareholders escape liability for the firm's debts, but this factor may be offset by the tax disadvantages of the corporate form of organization.
• D) Corporate investors are exposed to unlimited liability.
• E) Corporations generally face relatively few regulations.

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Definitions:

Hypothalamus

A region of the brain that regulates important functions, including temperature control, thirst, hunger, sleep, mood, and the release of hormones.

Midbrain

A region of the brainstem involved in vision, hearing, motor control, sleep/wake, arousal, and temperature regulation.

Hayflick Limit

Genetically controlled limit, proposed by Hayflick, on the number of times cells can divide in members of a species.

Maximum Life Span

The upper boundary of life expectancy for an organism, representing the greatest age an individual of a species can live under ideal conditions.