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.

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Definitions:

Particular Skills

Unique or specialized abilities that an individual possesses, making them proficient in specific tasks or professions.

Union Membership

Refers to the state of being a member of a labor union, which is an organization that represents the collective interests of workers in negotiations with employers over wages, working conditions, and benefits.

Right-to-Work Laws

Legislation that secures the right of employees to decide whether or not to join or support a union.

Taft-Hartley Act

A U.S. federal law enacted in 1947 that restricts the activities and power of labor unions.