Which of the Following Statements Is CORRECT

question 16

Multiple Choice

Which of the following statements is CORRECT?

• A) One advantage of forming a corporation is that equity investors are usually exposed to less liability than they would be in a partnership.
• B) Corporations face fewer regulations than sole proprietorships.
• C) One disadvantage of operating a business as a sole proprietor is that the firm is subject to double taxation, because taxes are levied at both the firm level and the owner level.
• D) It is generally less expensive to form a corporation than a proprietorship because, with a proprietorship, extensive legal documents are required.
• E) If a partnership goes bankrupt, each partner is exposed to liabilities only up to the amount of his or her investment in the business.

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Definitions:

Tympanic Thermometer

A device used to measure body temperature quickly and accurately by detecting the infrared heat generated by the tympanic membrane of the ear.

Axillae

The anatomical area under the arms, known commonly as the armpits, which contains sweat glands and hair follicles.

Ice Pack

A portable bag filled with ice or gel used to provide cold therapy to injuries or reduce swelling.

Shivering

An involuntary body response causing rapid muscle contractions to generate warmth in response to cold.