Which of the Following Statements Is CORRECT

question 61

Multiple Choice

Which of the following statements is CORRECT?

• A) One drawback of forming a corporation is that it generally subjects the firm to additional regulations.
• B) One drawback of forming a corporation is that it subjects the firm's investors to increased personal liabilities.
• C) One drawback of forming a corporation is that it makes it more difficult for the firm to raise capital.
• D) One advantage of forming a corporation is that it subjects the firm's investors to fewer taxes.
• E) One disadvantage of forming a corporation is that it is more difficult for the firm's investors to transfer their ownership interests.

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Definitions:

Products and Services

The combination of physical goods and intangible activities that fulfill customer needs and wants.

Balance of Trade

The difference between a country's exports and imports of goods over a certain period, indicating the economic health of a nation.

Monetary Value

The worth of a good, service, or asset expressed in terms of money; often determined by market forces.

Difference

The distinct characteristic or aspect that sets something apart from others.