Which of the Following Statements Is CORRECT

question 7

Multiple Choice

Which of the following statements is CORRECT?

• A) If a corporation elects to be taxed as an S corporation,then both it and its stockholders can avoid all Federal taxes.This provision was put into the Federal Tax Code in order to encourage the formation of small businesses.
• B) The more capital a firm is likely to require,the smaller the probability that it will be organized as a corporation.
• C) It is generally easier to transfer one's ownership interest in a partnership than in a corporation.
• D) One danger of starting a proprietorship is that you may be exposed to personal liability if the business goes bankrupt.This problem would be avoided if you formed a corporation to operate the business.
• E) Corporate shareholders are exposed to unlimited liability,but this factor is offset by the tax advantages of incorporation.

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Definitions:

Inferential Statistics

The branch of statistics that makes predictions or inferences about a population based on a sample of data.

Sample Size

The number of observations or individuals in a subset of the population selected for analysis.

Confidence Intervals

A span of numerical estimates generated from a sample that has a good chance of encompassing the actual value of an unspecified population characteristic.

Effect Size

An evaluative figure representing the scale of a condition or the potency of connections between variables.