Which of the Following Statements Is CORRECT

question 31

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 proprietorships.
• C) One disadvantage of operating a business as a 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.

---

Definitions:

Public Transportation

A system of vehicles such as buses, trains, and subways, provided by the government or private companies, for the purpose of transporting large numbers of people.

Cross-price Elasticity

Measures the responsiveness of the demand for one good to a change in the price of another good.

Grape Harvest

The process of collecting grapes from the vineyards, usually seasonal and significant for wine production.

Peanut Butter

A spread made from ground, dry-roasted peanuts, often mixed with ingredients like salt, sweeteners, or emulsifiers.