Which of the Following Could Explain Why a Business Might

question 29

Multiple Choice

Which of the following could explain why a business might choose to operate as a corporation rather than as a proprietorship or a partnership?

• A) Corporations generally face fewer regulations.
• B) Less of a corporation's income is generally subject to federal taxes.
• C) Corporate shareholders are exposed to unlimited liability,but this factor is offset by the tax advantages of incorporation.
• D) Corporate investors are exposed to unlimited liability.
• E) Corporations generally find it easier to raise large amounts of capital.

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Definitions:

Identity Theft

The fraudulent acquisition and use of a person's private identifying information, often for financial gain.

Cybercrime

Crimes committed via the Internet, including identity theft, embezzlement, fraud, sexual predation, and financial scams.

Bank Account

A financial arrangement made with a banking institution that allows for the deposit and withdrawal of money, and is used for managing personal or business finances.

Uniform Crime Report

A comprehensive statistical report of crime data collected by law enforcement agencies across the United States, compiled by the FBI.