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.

---

Definitions:

Dampening

The process of reducing the intensity or dampening the effects of something, such as sound, vibrations, or economic fluctuations.

General William Westmoreland

A senior United States Army officer who commanded U.S. forces during the Vietnam War from 1964 to 1968.

Stem the Tide

A phrase meaning to stop the flow or growth of something typically undesirable or harmful.

Communism

A political and economic ideology advocating for a classless society in which all property and resources are communally owned, and each person works and is compensated according to their abilities and needs.