Which One of the Following Statements Is Correct

question 42

Multiple Choice

Which one of the following statements is correct?

• A) Both partnerships and corporations incur double taxation.
• B) Both sole proprietorships and partnerships are taxed in a similar fashion.
• C) Partnerships are the most complicated type of business to form.
• D) Both partnerships and corporations have limited liability for general partners and shareholders.
• E) All types of business formations have limited lives.

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Definitions:

B2B

Business-to-business, a transaction or business conducted between one business and another, such as wholesaler to retailer or manufacturer to distributor.

B2C

Business-to-Consumer, a business model focused on selling products and services directly to the individual customer.

Buying Processes

The series of steps consumers follow from recognizing a need, evaluating options, making a purchase decision, to post-purchase evaluation.

New Buy

A buying situation in which a customer purchases a product or service for the first time, necessitating a decision-making process.