Which of the Following Statements Is CORRECT

question 7

Multiple Choice

Which of the following statements is CORRECT?

• A) If a corporation elects to be taxed as an S corporation,then both it and its stockholders can avoid all Federal taxes.This provision was put into the Federal Tax Code in order to encourage the formation of small businesses.
• B) The more capital a firm is likely to require,the smaller the probability that it will be organized as a corporation.
• C) It is generally easier to transfer one's ownership interest in a partnership than in a corporation.
• D) One danger of starting a proprietorship is that you may be exposed to personal liability if the business goes bankrupt.This problem would be avoided if you formed a corporation to operate the business.
• E) Corporate shareholders are exposed to unlimited liability,but this factor is offset by the tax advantages of incorporation.

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Definitions:

Printf Method

A method used in various programming languages for formatted output, where it allows the programmer to specify the formatting of the output by using placeholders within a string.

Formatted Values

Data output that is organized and styled according to specific criteria for presentation or further processing.

Java Statement

An instruction in Java that the Java Virtual Machine can execute, such as variable declarations, loops, or method calls.

Display

To show or exhibit information visually on a screen, monitor, or display unit.