Which of the Following Is an Advantage of a Corporation

question 62

Multiple Choice

Which of the following is an advantage of a corporation over a sole proprietorship?

• A)A corporation is easy to set up.
• B)Corporate tax laws are often less attractive than personal tax laws.
• C)Shareholders' liability is limited to their investment in the corporation.
• D)In a sole proprietorship, it is easier to transfer ownership.

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Definitions:

Differentiation

The tendency for managers in separate units, functions, or departments to differ in terms of goals, time spans, and interpersonal styles.

Coordination

A process of facilitating timing, communication, and feedback among work tasks.

Indirect Impact

Effects or outcomes that occur as a secondary result of an action, often not immediately apparent or directly connected.

Perceived Environment

An individual's subjective interpretation and awareness of their surrounding conditions, including social, physical, and organizational aspects.