Which of the Following Could Explain Why a Business Might

question 35

Multiple Choice

Which of the following could explain why a business might choose to operate as a corporation rather than as a sole proprietorship or a partnership?

• A) Corporations generally find it relatively difficult to raise large amounts of capital.
• B) Less of a corporation's income is generally subjected to taxes than would be true if the firm were a partnership.
• C) Corporate shareholders escape liability for the firm's debts, but this factor may be offset by the tax disadvantages of the corporate form of organization.
• D) Corporate investors are exposed to unlimited liability.
• E) Corporations generally face relatively few regulations.

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Definitions:

Normal Results

Test outcomes that fall within an established range of values, indicating no significant deviations or abnormalities.

Snakebite

A snakebite is an injury caused by the bite of a snake, often involving injection of venom or introduction of bacteria.

Automated Voice

Refers to synthesized speech generated by computers or other devices, often used in telephone systems, virtual assistants, and accessibility tools.

Emergency Instructions

Guidelines or directives provided to ensure safety and effective response in the event of an emergency situation.