Which of the Following Statements Is CORRECT

question 22

Multiple Choice

Which of the following statements is CORRECT?

• 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 stockholder has equal voting rights, i.e., "one person, one vote."
• E) Corporations of all types are subject to the corporate income tax.

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Definitions:

Subjective Mechanism

Subjective mechanism refers to processes or methods that are based on personal feelings, tastes, or opinions rather than objective facts or evidence.

Subsequent Actions

Activities, decisions, or measures taken following a particular event or as a continuation of a process already underway.

Projection

A psychological defense mechanism where individuals attribute their own unacceptable thoughts, feelings, or motives to another person.

Generalize

To make broad statements or conclusions based on a small amount of evidence or a limited number of examples.