Which of the Following Statements About the Corporate Form of Business

question 127

Multiple Choice

Which of the following statements about the corporate form of business organization is true?

• A) The corporate form has the disadvantage of double taxation relative to a sole proprietorship.
• B) The corporate form is preferred over the sole proprietorship because a corporation is easier to form and faces less regulation.
• C) Sole proprietorships are the most common form of business organization because liability is limited to the amount invested in the business by the sole proprietor.
• D) The corporate form has the advantage of unlimited liability.

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Definitions:

Compensating Differential

The difference in wages that arises from differences in the non-monetary aspects of different jobs, such as risk or desirability.

Coding Sector

The industry segment focused on the development, writing, and implementation of computer software and programs.

Labor Force

The total number of people available to work, including both the employed and the unemployed.

Reducing Inequality

Efforts or policies aimed at decreasing income and wealth disparities among individuals or groups.