Which of the Following Statements Is CORRECT

question 2

Multiple Choice

Which of the following statements is CORRECT?

• A) It is usually easier to transfer ownership in a corporation than it is to transfer ownership in a sole proprietorship.
• B) Corporate shareholders are exposed to unlimited liability.
• C) Corporations generally face fewer regulations than sole proprietorships.
• D) Corporate shareholders are exposed to unlimited liability, and this factor may be compounded by the tax disadvantages of incorporation.
• E) Shareholders in a regular corporation (not an S corporation) pay higher taxes than owners of an otherwise identical proprietorship.

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Definitions:

Unreasonably Dangerous

Describes a product or action that poses a risk of harm to people or property that exceeds what would be anticipated by the ordinary consumer.

Warranty Disclaimers

Legal statements that negate or limit the seller's liability for certain defects or failures in the goods or services provided.

Written

Expressed or conveyed by means of letters or symbols on a surface, typically intended to ensure permanence and clarity of the communication.

Liability

A legal obligation or responsibility that may arise from contracts, torts, or statutes requiring one party to compensate another.