Which of the Following Statements Is CORRECT

question 33

Multiple Choice

Which of the following statements is CORRECT?

• A) Most businesses (by number and total dollar sales) are organized as proprietorships or partnerships because it is easier to set up and operate in one of these forms rather than as a corporation. However, if the business gets very large, it becomes advantageous to convert to a corporation, primarily because corporations have
• Important tax advantages over proprietorships and partnerships.
• B) Due to limited liability, unlimited lives, and ease of ownership transfer, the vast majority of U.S. businesses (in terms of number of businesses) are organized as corporations.
• C) Due to legal considerations related to ownership transfers and limited liability, most business (measured by dollar sales) is conducted by corporations in spite of large corporations' often less favorable tax treatment.
• D) Large corporations are taxed more favorably than sole proprietorships.
• E) Corporate stockholders are exposed to unlimited liability.

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Definitions:

Objective Research

A method of inquiry that seeks to collect and analyze data without bias, focusing on observable phenomena and facts.

Partial Picture

An incomplete or fragmented view of something, lacking full understanding or comprehensive details.

Negative Correlation

A relationship between two variables in which one variable increases as the other decreases, indicating an inverse relationship.

Video Games

Digital or electronic games that involve interaction with a user interface to generate visual feedback on a two- or three-dimensional video display device.