Which of the Following Is an Advantage of Incorporation

question 144

Multiple Choice

Which of the following is an advantage of incorporation?

• A) Shareholders are liable for debts of the corporation.
• B) There are no tax advantages as compared to a sole proprietorship.
• C) Shareholders can veto decisions of directors.
• D) Shares are easily transferred.
• E) Shareholders owe a duty to the corporation.

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Definitions:

Affirmative Singular Proposition

A statement that positively asserts the existence or some characteristic of a single specific subject.

Distributed

A term in logic referring to when all instances of a subject are accounted for in a statement.

I Proposition

In traditional logic, an affirmative proposition making a claim that some subject is part of the extension of some predicate, as in "Some S are P."

Distributed

In logic, refers to a term that applies to all members of the category it describes.