Which of the Following Could Explain Why a Business Might

question 35

Multiple Choice

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

• A) Corporations generally find it relatively difficult to raise large amounts of capital.
• B) Less of a corporation's income is generally subjected to taxes than would be true if the firm were a partnership.
• C) 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.
• D) Corporate investors are exposed to unlimited liability.
• E) Corporations generally face relatively few regulations.

---

Definitions:

Insert a Symbol

The action of adding special characters that are not found on a keyboard into a document.

Insert WordArt

A feature in document and presentation software that allows users to create stylized text with various effects and shapes.

Update the Index

The process of refreshing a database or search engine index to include the most recent changes or additions.

Compiled Index

A comprehensive list, usually sorted alphabetically or numerically, that aggregates information from various sources for quick reference.