Which of the Following Statements Best Describes Firm Organization

question 31

Multiple Choice

Which of the following statements best describes firm organization?

• A)One of the disadvantages of a sole proprietorship is that the proprietor is exposed to unlimited liability.
• B)It is generally easier to transfer one's ownership interest in a partnership than in a corporation.
• C)One of the advantages of the corporate form of organization is that it avoids double taxation.
• D)One of the advantages of a corporation from a social standpoint is that every shareholder has equal voting rights, i.e., "one person, one vote."

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Definitions:

Cannot Exceed

A term that limits or restricts a particular value, quantity, or action from going beyond a specified point.

Inequality

A mathematical statement indicating that two expressions are not equal, usually shown with signs like <, >, ≤, or ≥.

Linear Optimization

The process of finding the best solution or maximizing/minimizing a linear objective function subject to linear equality or inequality constraints.

Objective Function

A mathematical function used in various optimization problems that describes the problem's objective, usually maximization or minimization.