Why Might a Business Choose to Operate as a Corporation

question 12

Multiple Choice

Why might a business choose to operate as a corporation rather than as a sole proprietorship or a partnership?

• A)Less of a corporation's income is generally subjected to taxes than would be true if the firm were a partnership.
• B)Corporate shareholders escape liability for the firm's debts, but this factor may be offset by the tax disadvantages of the corporate form of organization.
• C)Corporate investors are exposed to limited growth potential.
• D)Corporations generally face relatively few regulations.

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Definitions:

Repetitive Behaviors

Actions or sequences of actions that are repeated multiple times in a similar manner, often observed in various psychological or developmental conditions.

Empathizers

Individuals who possess the ability to understand and share the feelings of others.

Systemizers

Individuals who have a strong inclination to analyze, understand, and build systems.

Simon Baron-Cohen

A British clinical psychologist and professor of developmental psychopathology at the University of Cambridge, known for his work on autism spectrum conditions.