Which of the Following Statements Is False

question 205

Multiple Choice

Which of the following statements is false?

• A)Corporations can issue stocks and bonds, while proprietorships cannot.
• B)Corporations have one owner, while proprietorships have many owners.
• C)Corporations face more taxes than do proprietorships.
• D)Proprietorships have unlimited liability while corporations have limited liability.

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Definitions:

Monopolistically Competitive

Describes a market structure where many companies sell products that are similar but not identical, allowing for some degree of market power.

Product Differentiation

A strategy used by companies to distinguish their products from those of competitors based on features, quality, or design.

Economic Welfare

The overall well-being and standard of living of individuals and societies, often measured by factors such as income, health, and education.

Economies of Scale

Businesses enjoy cost savings resulting from their size of operations, wherein the cost per unit produced usually drops with greater scale.