Which of the Following Statements Is CORRECT

question 10

Multiple Choice

Which of the following statements is CORRECT?

• A) Corporations generally face fewer regulations than sole proprietorships.
• B) Corporate shareholders are exposed to unlimited liability.
• C) It is usually easier to transfer ownership in a corporation than in a partnership.
• D) Corporate shareholders are exposed to unlimited liability, but this factor is offset by the tax advantages of incorporation.
• E) There is a tax disadvantage to incorporation, and there is no way any corporation can escape this disadvantage, even if it is very small.

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Definitions:

Usable Barn

A structure that is in a suitable condition for storage or housing of agricultural equipment, livestock, or farm produce.

Condition Precedent

A contractual clause requiring certain conditions to be fulfilled before a contract becomes effective or an obligation is to be performed.

Condition Concurrent

In contracts, conditions that are to happen or be performed at the same time by both parties involved in the agreement.

Conditions Subsequent

Clauses in a contract that, if met, bring about the termination of the contract's obligations for one or more parties.