Which of the Following Statements About the Professional Corporation Form

question 59

Multiple Choice

Which of the following statements about the professional corporation form of business organization is not true?

• A)The professional employees are liable for their own acts.
• B)Corporations are not restricted by legal requirements, as are smaller sole proprietorships and partnerships.
• C)Tax advantages exist that are related to fringe benefits for the corporation and its employees.
• D)Reorganization of the corporation after a change in shareholders is not necessary.

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Definitions:

Quality Workforce

An employment group characterized by high skill levels, efficiency, and a commitment to producing high-quality work.

Competitive Salaries

Compensation levels offered by employers that are at or above the market rate to attract and retain talent.

Consumer Surplus

The difference between the maximum price a consumer is willing to pay for a good or service and the actual price they pay.

Producer Surplus

The difference between the amount producers are willing to sell a good for and the actual amount they receive by selling it at the market price.