Which of the Following Statements Is CORRECT

question 18

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.

---

Definitions:

Population Growth

The increase in the number of individuals in a population.

Environment Performance Index (EPI)

A method of quantifying and numerically marking a country's environmental performance in different policy categories.

GDP

Gross Domestic Product represents the aggregate value, in monetary or market terms, of every final good and service created inside the confines of a country during a designated period.

Individual Transferable Quota (ITQ)

A policy tool used in fisheries management, allowing fishing rights to be allocated to individuals or entities, which can then be traded.