Which of the Following Statements Is CORRECT

question 30

Multiple Choice

Which of the following statements is CORRECT?

• A) One drawback of forming a corporation is that it generally subjects the firm to additional regulations.
• B) One drawback of forming a corporation is that it subjects the firm's investors to increased personal liabilities.
• C) One drawback of forming a corporation is that it makes it more difficult for the firm to raise capital.
• D) One advantage of forming a corporation is that it subjects the firm's investors to fewer taxes.
• E) One disadvantage of forming a corporation is that this makes it more difficult for the firm's investors to transfer their ownership interests.

Recognize the reporting requirements for discontinued operations.

Understand the concepts of pro forma income and its exclusions.

Learn the strategies for evaluating financial statements, including ratio analysis, horizontal and vertical analysis.

Understand the interest of different stakeholders (creditors, stockholders) in financial statement analysis.