Which of the Following Statements Is CORRECT

question 28

Multiple Choice

Which of the following statements is CORRECT?

• A) It is generally more expensive to form a proprietorship than a corporation because, with a proprietorship, extensive legal documents are required.
• B) Corporations face fewer regulations than sole proprietorships.
• C) One disadvantage of operating a business as a sole proprietorship is that the firm is subject to double taxation, at both the firm level and the owner level.
• D) One advantage of forming a corporation is that equity investors are usually exposed to less liability than in a regular partnership.
• E) If a regular partnership goes bankrupt, each partner is exposed to liabilities only up to the amount of his or her investment in the business.

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Definitions:

Sesshu Toyo

A notable Japanese painter and Zen monk from the 15th century, renowned for his ink landscapes.

Ming Masters

Distinguished artists of the Ming Dynasty, recognized for their exceptional contributions to Chinese art, particularly in painting, calligraphy, and porcelain.

Kano Motonobu

A prominent Japanese painter of the Kano school, active in the late 15th to early 16th century, known for his contributions to the development of the school's style and techniques.

Hasegawa Tohaku

A prominent Japanese painter of the Azuchi-Momoyama period, celebrated for his ink paintings, landscapes, and screen works.