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:

Territory Management

The strategic planning and execution of sales efforts within a specific geographic area to maximize efficiency and productivity.

Sales Profits

The financial gain realized when the revenue from selling goods or services exceeds the cost associated with providing them.

Operating

Operating refers to the day-to-day activities and processes undertaken by an organization or system to conduct its business and achieve its objectives.

Territory Salesperson

A professional responsible for managing and selling products or services to customers within a specific geographical area.