Which of the Following Statements Is CORRECT

question 49

Multiple Choice

Which of the following statements is CORRECT?

• A) Due to limited liability, unlimited lives, and ease of ownership transfer, the vast majority of U.S. businesses (in terms of number of businesses) are organized as corporations.
• B) Most businesses (by number and total dollar sales) are organized as proprietorships or partnerships because it is easier to set up and operate one of these forms rather than as a corporation. However, if the business gets very large, it becomes advantageous to convert to a corporation, primarily because corporations have important tax advantages over proprietorships and partnerships.
• C) Due to legal considerations related to ownership transfers and limited liability, which affect the ability to attract capital, most business (measured by dollar sales) is conducted by corporations in spite of large corporations' less favorable tax treatment.
• D) Large corporations are taxed more favorably than sole proprietorships.
• E) Corporate stockholders are exposed to unlimited liability.

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Definitions:

Default Workday

The standard or typical day’s schedule as defined by an organization, often assumed to be Monday through Friday, 9 am to 5 pm.

Work Week View

A calendar display mode that focuses specifically on the standard business days, typically Monday through Friday.

Appointment Area

Part of a calendar or scheduling application where dates and times for meetings and other commitments are marked.

Events

Specific instances or occasions that are organized or happen with a purpose, often marked on calendars and involving participation or observation.