What Is a Reason That a Corporation Might Choose to "Split

question 18

Essay

What is a reason that a corporation might choose to "split" its stock?.
_____ a)Double taxation refers to the fact that both a partnership and its partners must pay income tax on the earnings of the partnership.
_____ b)A sole proprietorship is an accounting entity separate from its owner.
_____ c)Limited liability is a benefit to corporations and to sole proprietorships.
_____ d)A corporation's life continues when a shareholder dies or sells his or her stock.
_____ e)Sole proprietorships are, generally, subject to fewer governmental regulations than corporations.

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Definitions:

Stratified Squamous

Refers to a type of epithelial tissue consisting of several layers of flat cells designed to protect underlying tissues in areas subject to abrasion.

Epithelial Tissue

Sheetlike animal tissue that covers outer body surfaces and lines internal tubes and cavities.

Hormonal Control

The regulation of bodily functions by hormones, which are chemicals released into the bloodstream by endocrine glands.

Endocrine System

A collection of glands that produce hormones to regulate processes such as growth, metabolism, and reproduction.