Which Statement Is TRUE

question 72

Multiple Choice

Which statement is TRUE?

• A) A corporation never needs to worry about double taxation.
• B) A sole proprietorship never needs to worry about liability.
• C) An LLC never needs to worry about double taxation.
• D) A partnership never needs to worry about double taxation.

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Definitions:

Anticompetitive Mergers

Corporate mergers that significantly reduce market competition, potentially leading to monopolistic practices.

Sherman Act

A landmark federal statute in the U.S. that prohibits monopolistic practices and aims to promote competition.

Predatory Pricing

A pricing strategy where a product or service is set at a very low price with the intent to drive competitors out of the market.

Premium Tires

High-quality tires that offer superior performance and durability compared to standard tires, often at a higher price point.