Which of the Following Statements Is Correct

question 15

Multiple Choice

Which of the following statements is correct?

• A)A major disadvantage of a regular partnership or a corporation as a form of business is the fact that they do not offer their owners limited liability, whereas proprietorships do.
• B)An advantage of the corporate form for many businesses is the fact the corporate tax rate always exceeds the personal tax rate, which is the rate at which proprietorships and partnerships are taxed.
• C)There are more partnerships and sole proprietorships than corporations in the U.S., but corporations produce more goods and services than do other forms of business.
• D)Because corporations enjoy the benefits of limited liability, easy transferability of ownership interest, unlimited life, and favorable tax status relative to the situation for partnerships and proprietorships, most large businesses choose to incorporate.
• E)Because lawyers have the incorporation process so automated (e.g., word processors for drawing up the necessary papers), it is less expensive to form a corporation than to form a proprietorship or partnership.

---

Definitions:

Alternative Medicine

A group of medical treatments, practices, and products that are used instead of conventional Western medicine.

Rescission

The practice by insurance companies of canceling coverage only after a person gets sick.

Insurance Companies

Businesses that provide coverage, in the form of compensation resulting from loss, damages, injury, treatment, or hardship in exchange for premium payments.

Quality of Life

A concept that evaluates the general well-being of individuals and societies, encompassing not only wealth and employment but also the environment, physical and mental health, education, recreation and leisure time, and social belonging.