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:

Unity

The state of being united or joined as a whole, especially among members of a group or team, resulting in a sense of solidarity and shared purpose.

Loss of Individuality

The process by which individuals lose their unique identity and assimilate into a group, often leading to a conformity or loss of personal expression.

Social Loafing

The phenomenon where individuals exert less effort to achieve a goal when they work in a group compared to when they work alone.

Role Ambiguity

Occurs when an individual lacks clear direction or information about their responsibilities and expectations in their role.