Which of the Following Statements Best Describes Firm Organization

question 36

Multiple Choice

Which of the following statements best describes firm organization?

• A)It is generally more expensive to form a proprietorship than a corporation because a proprietorship requires extensive legal documents.
• B)One disadvantage of operating a business as a sole proprietorship is that the firm is subject to double taxation, at both the firm level and the owner level.
• C)One advantage of forming a corporation is that equity investors are usually exposed to less liability than in a regular partnership.
• D)If a regular partnership goes bankrupt, each partner is exposed to liabilities only up to the amount of his or her investment in the business.

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Definitions:

Frustration Response

An emotional or behavioral response that occurs when an individual is blocked from reaching a desired goal or outcome.

Conditioned Emotional Response

An emotional reaction acquired through classical conditioning, where a neutral stimulus becomes associated with an emotionally charged event or object.

Dependency

A reliance on something or someone, often characterized by a lack of independence.

Disengagement Phases

Periods during which individuals gradually reduce involvement or detach from roles, relationships, or activities.