Which of the Following Statements Is CORRECT

question 28

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.

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Definitions:

Buying Decision Process

A series of steps consumers go through, including need recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior.

Vendor Rating System

A method used by businesses to evaluate and rank suppliers based on performance criteria such as quality, delivery time, price, and compliance.

Postpurchase Behavior

The actions and reactions of consumers after buying and using a product, which can include product reviews, repeat purchases, or complaints.

Buying Committee

A group of individuals within an organization responsible for making purchase decisions, typically involving high-value products or services.