Which of the Following Statements Is CORRECT

question 2

Multiple Choice

Which of the following statements is CORRECT?

• A) It is usually easier to transfer ownership in a corporation than it is to transfer ownership in a sole proprietorship.
• B) Corporate shareholders are exposed to unlimited liability.
• C) Corporations generally face fewer regulations than sole proprietorships.
• D) Corporate shareholders are exposed to unlimited liability, and this factor may be compounded by the tax disadvantages of incorporation.
• E) Shareholders in a regular corporation (not an S corporation) pay higher taxes than owners of an otherwise identical proprietorship.

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Definitions:

Sellers

Individuals or entities that offer goods or services in exchange for financial compensation.

Supply Schedule

A table that shows the relationship between the price of a good and the quantity of that good a seller is willing to supply to the market at various prices.

Sellers

Individuals or entities that offer goods or services for sale in the marketplace.

Buyers

Individuals or entities that make purchases of goods and services either for personal use, resale, or use in production.