Which of the Following Could Explain Why a Business Might

question 45

Multiple Choice

Which of the following could explain why a business might choose to operate as a corporation rather than as a sole proprietorship or a partnership?

• A) Less of a corporation's income is generally subjected to taxes than would be true if the firm were a partnership.
• B) Corporate shareholders escape liability for the firm's debts, but this factor may be offset by the tax disadvantages of the corporate form of organization.
• C) Corporate investors are exposed to limited growth potential.
• D) Corporations generally face relatively few regulations.

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Definitions:

Electronic Exchange

A platform or system that facilitates the trading of financial instruments, commodities, or other products through electronic systems without the need for physical trading floors.

Sell-Side Marketplace

B2B model in which organizations sell to other organizations from their own private e-marketplace or from a third-party site.

Cyber-Squatting

The practice of registering, selling, or using a domain name with the intent of profiting from the goodwill of a trademark belonging to someone else.

Domain Names

The name assigned to an Internet site, which consists of multiple parts, separated by dots, that are translated from right to left.