Which of the Following Statements Is CORRECT

question 16

Multiple Choice

Which of the following statements is CORRECT?

• A) One advantage of forming a corporation is that equity investors are usually exposed to less liability than they would be in a partnership.
• B) Corporations face fewer regulations than sole proprietorships.
• C) One disadvantage of operating a business as a sole proprietor is that the firm is subject to double taxation, because taxes are levied at both the firm level and the owner level.
• D) It is generally less expensive to form a corporation than a proprietorship because, with a proprietorship, extensive legal documents are required.
• E) If a partnership goes bankrupt, each partner is exposed to liabilities only up to the amount of his or her investment in the business.

Analyze trends in organizational behavior related to ethics and leadership.

Understand gender differences in leadership perceptions and effectiveness.

Recognize different leadership theories and styles, including laissez-faire and transformational leadership.

Explore the challenges women face in leadership roles and the theories explaining these phenomena.

---

Definitions:

Quiet Infant

A term referring to a baby who is typically less vocal or active, displaying calmness and minimal fussiness.

Cautious

Characterized by careful forethought to avoid potential harm or errors; prudent.

Stage Theorists

Psychologists who propose that development occurs in distinct stages, each characterized by specific behaviors and mental processes.

Physical Maturation

The process of biological growth and development in the body, typically culminating in adult physical capabilities.