Which of the Following Could Explain Why a Business Might

question 29

Multiple Choice

Which of the following could explain why a business might choose to operate as a corporation rather than as a proprietorship or a partnership?

• A) Corporations generally face fewer regulations.
• B) Less of a corporation's income is generally subject to federal taxes.
• C) Corporate shareholders are exposed to unlimited liability,but this factor is offset by the tax advantages of incorporation.
• D) Corporate investors are exposed to unlimited liability.
• E) Corporations generally find it easier to raise large amounts of capital.

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Definitions:

Posterior Lobe

The back part of an organ or gland, such as the posterior lobe of the pituitary gland in the brain.

Homeostasis

The process by which living organisms regulate their internal environment to maintain stable, life-supporting conditions.

Pars Intermedia

The intermediate lobe of the pituitary gland, involved in the production of melanocyte-stimulating hormone (MSH).

Parathyroid Glands

Small endocrine glands in the neck that produce parathyroid hormone, which regulates calcium levels in the blood.