Which of the Following Statements Is CORRECT

question 46

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 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:

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Fluids that occupy the spaces between cells and provide a means of transporting nutrients and waste materials.

Substances

refers to forms of matter with a specific composition and properties that distinguish them from other forms.

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A hormone produced by the thyroid gland that lowers blood calcium levels by inhibiting bone resorption and promoting calcium uptake by the bones.

Pituitary Gland

A small, pea-sized gland situated at the base of the brain, crucial for controlling various hormones that regulate growth, metabolism, and reproductive functions.