Which of the Following Is a Benefit of Forming a Corporation

question 23

Multiple Choice

Which of the following is a benefit of forming a corporation?

• A) Corporations can be double taxed.
• B) Owners of a corporation are passive investors.
• C) Owners of a corporation are subject to unlimited liability.
• D) Corporations can offer stock options to employees.
• E) There is little paperwork to file when forming a corporation.

---

Definitions:

Psychological Disorder

A pattern of behavioral or psychological symptoms that impact multiple areas of life and/or bring significant distress.

Distress

A negative stress that can result from adverse events, leading to physical and psychological discomfort.

Daily Life

The routine activities and experiences that make up an individual's everyday existence.

DSM-IV-TR

The fourth edition, text revision of the Diagnostic and Statistical Manual of Mental Disorders, used for psychiatric diagnosis and classification.