Which of the Following Statements Is CORRECT

question 9

Multiple Choice

Which of the following statements is CORRECT?

• A) One of the disadvantages of incorporating a business is that the owners then become subject to liabilities in the event the firm goes bankrupt.
• B) Sole proprietorships are subject to more regulations than
• Corporations.
• C) In any type of partnership, every partner has the same rights,
• Privileges, and liability exposure as every other partner.
• D) Sole proprietorships and partnerships generally have a tax
• Advantage over many corporations, especially large ones.
• E) Corporations of all types are subject to the corporate income tax.

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Definitions:

Expert Power

Authority or influence derived from possessing knowledge or skills in a particular area.

Physical Resources

Tangible assets such as buildings, machinery, and raw materials that an organization uses to conduct its business.

Visibility

The degree to which an entity's presence, actions, or status is known and perceivable by others.

Contingency

The dependence on chance or on the fulfillment of a condition; in management, it refers to the idea that there is no one best way to organize or lead, and that it will depend on various situational factors.