Which of the Following Statements Is CORRECT

question 2

Multiple Choice

Which of the following statements is CORRECT?

• A) It is usually easier to transfer ownership in a corporation than it is to transfer ownership in a sole proprietorship.
• B) Corporate shareholders are exposed to unlimited liability.
• C) Corporations generally face fewer regulations than sole proprietorships.
• D) Corporate shareholders are exposed to unlimited liability, and this factor may be compounded by the tax disadvantages of incorporation.
• E) Shareholders in a regular corporation (not an S corporation) pay higher taxes than owners of an otherwise identical proprietorship.

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Definitions:

Job Description

A formal account of an employee's responsibilities, duties, and the scope of a specific job role within an organization.

Sales Position

A job role focused on generating and closing business deals, maintaining customer relationships, and achieving sales targets.

Commission Compensation Plan

A pay structure where employees earn a percentage of the sales they generate, incentivizing higher performance and sales.

Earnings

The amount of profit that a company produces during a specific period, often used as an indicator of the company's financial health.